Nonprofit donation receipts are both a legal requirement and an important part of nurturing your supporters.
If you’re new to the nonprofit world and have never created a donation receipt before, don’t stress—in this article, we are going to explain how donation receipts work, outline their basic features, and share 6 nonprofit donation receipt templates that you can customize and make your own.
Let’s get started.
Donation receipts are a legal way to both prove that a donor has given your nonprofit a gift and that the gift was received and accepted.
The IRS requires that any gift over $250 made to a nonprofit be receipted. However, it’s best practice to acknowledge every gift—no matter its size—with a receipt and a thank-you letter.
A nonprofit charitable donation receipt can also be used by the donor for tax purposes. Charitable giving deductions can reduce the amount of income tax owed to the government, and for some donors, tax deductibility is often a big incentive to give.
Of course, there are exceptions to a standard donation receipt. One exception is if you receive a “quid pro quo” gift. These are common receipts sent out after special events or galas. Hypothetically, a donor could contribute $100 to the nonprofit, and in return, receive a ticket to a sporting event worth $40. The deductible amount is then actually $60.
Another exception is in-kind gifts.
A nonprofit accepting a gift-in-kind does need to acknowledge the gift’s receipt, but it’s the donor’s responsibility to determine the gift’s value. For large in-kind gifts such as a vehicle donation or donation of a work of art, the IRS requires that the donor pay for a professional appraisal of the item.
And a third exception is with grants awarded by a foundation or government entity. While you definitely need to thank the funder and comply with any post-award reporting requirements, a nonprofit donation receipt is not needed unless the funder requests one.
Make it your habit to send donation receipts quickly, within 24 to 48 hours after you’ve received a gift. If your nonprofit provides donors with a year-end receipt of their total giving, don’t stop that practice. But do send a receipt acknowledging each individual gift as well.
And don’t forget that for first-time donors, a donation receipt is one of the first interactions they’ll have with your nonprofit. It’s important to make a good first impression and begin to build that (hopefully) long-lasting relationship.
Using a donation receipt template—which we will share a few of below—is a convenient way to make sure your nonprofit nurtures these relationships and remains in compliance with the Internal Revenue Service.
There are legal requirements for what information must be included on a nonprofit donation receipt. Should your organization fail to meet these requirements, you’re at risk of losing your tax-exempt status. That’s a big price to pay for a careless error.
The IRS requires the following to be included on any donation receipt:
As best practice, a donation receipt should also (but is not legally required to) include:
Next, we’ll take a look at some free nonprofit donation receipt templates that are suitable for just about every type of gift your nonprofit might receive.
Below we have listed some of the best nonprofit donation receipt templates we could find. We’ve included templates you can use for cash gifts, in-kind donations, a vehicle donation, and even a quid pro quo gift.
While these templates are a great place to start, since a gift receipt is actually a legal document, it’s a good idea to consult with your organization’s attorney before finalizing your receipting document.
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RocketLawyer offers a free simple 501(c)(3) nonprofit donation receipt template that can be totally customized. Simply select your state from a drop-down menu and download the template. Then you can customize it or put it on your letterhead. This is a fine basic template to accompany a thank-you letter or to be sent on its own.
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This basic donation receipt template is just the right size to slip into a folded thank-you letter. Of course, you can customize the colors since it’s an Excel template. You can also add your own branding to this template by adding your organization’s logo.
Note: we don’t recommend using this template for gifts-in-kind.
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Combining your nonprofit donation receipt with a thank-you letter can be a great tactic. Here’s a free nonprofit donation receipt letter template you can customize and easily generate. It’s downloadable as a PDF, but if you have Acrobat Pro, it’s simple to turn that PDF into a Word document.
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This template for a gift-in-kind can be customized for use by any type of nonprofit. Remember: the IRS requires that gifts-in-kind be valued by the donor, not by the receiving nonprofit.
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Many nonprofits augment their fundraising efforts by using a third party to help them facilitate donations of vehicles or boats. This template is useful if you are planning on developing such a program.
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Although designed for churches, this quid pro quo receipt letter can easily be tweaked for other nonprofit organizations. Note the clear wording setting forth the value of the benefit (dinner) versus the actual deductible amount. This template is a keeper for any 501(c)(3) that hosts events.
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As you embark upon creating (or updating) your nonprofit donation receipt letters, keep these suggestions in mind.
Always use your nonprofit’s letterhead or logo on your donation receipt.
You should also use your nonprofit’s approved color palette and preferred type font. A donation receipt is a donor-facing communication, so make sure those receipts harmonize with the rest of your marketing materials. You can check out this nonprofit branding guide for more insights and tips.
The last thing you want is for your donors to struggle to understand or read their donation receipts.
Keep the formatting of your receipt simple and streamlined. Make it easy for the donor (and yourself!) to understand each part of the receipt. If your donors skew toward the older side, consider bumping up your font size by a point or two. We’ve seen donation receipts with nearly microscopic print—don’t force your donors to get out a magnifying glass!
Even though you’re only legally required to send a receipt, including a personalized thank you note is a great way to steward your donors and show them how much you appreciate their support. Taking the time to write a personalized thank-you note can make a strong positive impression on the donor.
Bonus tip: Sending an image along with your thank-you letter can remind donors why they gave in the first place and can subtly show them the tangible results of their generosity. Donors love to see the impact of their gifts and it can help them feel more connected to your mission in the long-run.
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When done well, a good donation receipt with a thank-you letter packs a one-two punch. First, it provides proof that a gift has been made, fulfilling the IRS’s requirements. Second, it shows your donors how much you appreciate their gift and the impact that it makes.
If you’ve never created a donation receipt before, we hope you can use the templates we’ve shared in this post as a solid starting point.
And for even more nonprofit resources and guides, check out Instrumentl’s info-rich blog.
In addition to posts like How to Start a 501c3 Nonprofit in 10 Steps and How to Write Successful Nonprofit Bylaws, we also offer free live and on-demand webinars with our partners to help you further your mission.
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