Donation Acknowledgment Letters: IRS Rules + Template (2026)

Donation acknowledgment letters: the IRS rules (and a template)

When a donor gives $250 or more, the IRS requires a written acknowledgment before they can deduct it. Getting it right protects your donors and your credibility.

The rules are simple once you know them. Here is exactly what your acknowledgment has to say, when the special rules kick in, and a template you can adapt.

This is general information, not tax advice. See IRS Publication 1771 for the full rules.

What the IRS requires

$250 or more

The donor needs a written acknowledgment to deduct the gift

Must state

Your organization's name, the amount, and the date

Must state

Whether you gave any goods or services in return, and their value

Over $75 with something in return

A quid pro quo disclosure of the deductible portion

Source

IRS Publication 1771

Why acknowledgments matter

For any single gift of $250 or more, the donor needs a written acknowledgment from you to claim the deduction. The IRS does not send it, you do. A prompt, correct acknowledgment protects your donor and signals that you run a tight ship.

What every acknowledgment must include

Your organization's name.
The amount of cash, or a description (not a value) of any non-cash gift.
The date of the contribution.
A statement about whether the donor received any goods or services in return, and if so, a description and good-faith estimate of their value.

For a typical cash gift with nothing given in return, that last line is simply:

No goods or services were provided in exchange for this contribution.

Quid pro quo gifts over $75

If a donor pays more than $75 and gets something back, a gala ticket, an auction item, you must disclose that only the amount above the fair value of what they received is deductible. Example: a $100 dinner ticket where the meal is worth $40 leaves a $60 deductible gift, and you say so.

Non-cash gifts

For donated goods, describe the item but do not state a dollar value, valuing it is the donor's job, not yours. See our guide to in-kind donations.

A template you can adapt

Dear [Name], thank you for your generous gift of $[amount] on [date] to [Organization]. Your support makes [specific impact] possible. No goods or services were provided in exchange for this contribution. [Organization] is a 501(c)(3); your gift is tax-deductible to the extent allowed by law. With gratitude, [Name / title].

Send it promptly, by January 31 of the next year at the latest, so donors have it before they file. A good thank-you letter can double as the acknowledgment.

Common questions

When does a donor need a written acknowledgment?

For any single contribution of $250 or more. Without it, the donor cannot claim the deduction, so you should send one for every gift at or above that amount.

Do I have to state the value of the gift?

For cash, yes, state the amount. For non-cash gifts, describe the item but do not assign a value; the donor determines the deductible amount.

What is a quid pro quo contribution?

A payment over $75 where the donor receives goods or services in return. You must tell them only the amount above the value of what they received is deductible.

Do I need to send a receipt for every donation?

It is best practice to acknowledge every gift, and it is required for any single gift of $250 or more. This is general info, not tax advice.