Save time and stay compliant with this donation receipt template

If your nonprofit accepts charitable contributions (donations, in-kind items, etc.), formally acknowledging gifts is a necessity. In this article, we’ll share everything nonprofits need to know about the process, including how a free donation receipt template can save you time and keep you organized.

What is a donation receipt?

Also called a gift acknowledgment letter or a donation receipt letter, a donation receipt is (you guessed it) an acknowledgment of receipt for a contribution made to a nonprofit organization with tax-exempt status—whether the donation came through a fundraising page, a live event, or even an online donation form or website widget.

When should you send a donation receipt?

There are multiple timeframes to be aware of regarding when to send donation receipts. In general, charitable organizations typically send this kind of message at the following times:

• Immediately after a donation is made ⏰ Automation tools like Givebutter’s donation receipt generator make it easier than ever to send an instant acknowledgment of a gift or ticket purchase.  
• Upon request 💌 Nonprofits that don’t use automatic receipts often send an acknowledgment of a gift when requested by a supporter for a tax deduction. Your nonprofit CRM can streamline searching and filtering contacts and transactions and keep you organized by marking gifts as acknowledged.
• For year-end donation receipts 🗓️ End-of-year giving reports are often used to compile a donor’s yearly gifts for tax purposes. 
• After special gift contributions 🎁 Aside from one-time donations or fundraising event ticket purchases, nonprofits also send receipts for recurring donations, matched gifts, in-kind donations, and other unique situations.

What are the IRS rules on donation receipts?

Donation receipt letters are not only essential for donor stewardship and building connections, but they’re also legally required by the IRS. Nonprofits, by law, must acknowledge a gift of $250 or higher with the following details:

✅  The formal name of your nonprofit  

✅  The donor’s full name  

✅  The date of the donation  

✅  A description of non-cash donation (if applicable)  

✅  Acknowledgment that donors didn’t receive any goods or services in exchange for the donation 

What is the format for a charity donation receipt?

Tax receipts can be sent in many ways—including email, letter, and text. But, it’s important to note that some donation receipt formats are more appropriate than others, for a few reasons: 

• Email 📩 Email is usually the best option for all charitable donation receipts, given that they offer immediate acknowledgment through automation.
• Letter 💌 Direct mail is best for a more formal thank you following an automated email receipt.
• Text 🤳 Text receipts should only be used for small transactions in a text-to-give campaign.

How to create donation receipts (plus, real examples!)

Follow these five steps to build a donation receipt that checks all the boxes.

Step 1. Automate 🔁

Automating your donation receipts saves time and keeps you organized. Each type of donation receipt can benefit from automation: 

📩 Email: Especially for online donations, email is a practical medium for issuing donation receipts. Many organizations save time by setting up a donation receipt template for automatic donation receipts through a CRM or donor management system.

📨 Direct mail: Donation receipts also travel via snail mail! With Givebutter Mailings, you can create a free donation receipt template to use again and again.

🤳 Text message: For tech-savvy donors, sending a donation letter via SMS can be effective. Use texting tools to craft your donation receipt and send immediate, personal thank-you blasts when donations arrive.

Step 2. Personalize 💛

While donation receipt letters can feel like just another item on the to-do list, donation receipts are a prime opportunity to connect with supporters and make them feel important. That’s where personalization comes in.

In your CRM, organize supporter data with filters, labels, and tags so you know who you’re thanking, and why. With merge fields, you can automatically address each supporter by first and last name, include specific donation amounts, and even mention the specific campaign they contributed to.

Step 3. Brand it  🎨

Effective donation receipts include branded elements to remind supporters of who you are. Plus, a little branding always helps to stick out from run-of-the-mill spam. Just like creating custom donation forms, specific design elements reinforce your organization’s identity and bolster your connection with supporters. 

Design a donation receipt template that reflects your organization by including:

• Your organization’s logo 
• Your brand colors and fonts
• Branded illustrations or graphics 

Step 4. Show your gratitude  🙏

Donor stewardship involves plenty of gratitude every step of the way. When creating your donation receipt, emphasize the impact of a donor’s gift with specificity. Instead of only including the factual details of a contribution, create a custom thank you message that describes the impact of the donation. 

Provide information about the beneficiaries of the donor’s contribution, how the gift supported essential operating costs, or why their donation is especially impactful during a specific time or season. It’ll make all the difference! Plus, you can make it pop with embedded video testimonials, photos, and GIFs. 

🌟 Check out a sample 501(c)(3) donation receipt letter: For their campaign to provide diverse books at free libraries around their Massachusetts community, Tri-Town Against Racism created this branded, simple (yet powerful) opening message with Givebutter’s automated donation receipt template:

Step 5. Inspire 💪

While donation receipt templates are all about acknowledging past gifts, they can also be used to inspire future giving. When donors feel genuinely appreciated, they’re more likely to give again. That’s where strategic calls-to-action (CTAs) come in.

To maintain the giving momentum, great donation receipt templates often include:

• Your nonprofit’s contact information for further communication
• Social media icons and links to stay connected 
• QR codes (if sent via snail mail) that link directly to your website, campaign, donation page, or form

Here’s what the remainder of the donation receipt from Tri-Town Against Racism looks like, starting with a record of the message the donor shared on their supporter wall, followed by transaction information, and ending with one-click social buttons for sharing the campaign further:

Donation receipt templates—free and built into your all-in-one fundraising solution

Take the stress out of donation receipt letters with Givebutter’s easy-to-use platform, which integrates everything nonprofits need to collect donations, acknowledge supporters, and build long-term relationships. 

Every time someone donates through Givebutter, they receive an immediate email confirmation of their donation or ticket purchase with all the tax information they need—donation amount, EIN, campaign details, reference number, and more. You can even add your branding, logo, and a heartfelt thank-you message to customize donor receipts to reflect your mission and meaningfully express your gratitude.

Sign up for your free Givebutter account, tailor your template for donation receipt to your liking, and see how automation can make your fundraising efforts as smooth as butter.