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For nonprofits
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:
Prefer a file you can edit?Download Word (.docx)
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
Send it promptly. Donors must have it by the time they file, and January 31 of the next year is a good habit. A good thank-you letter can double as the acknowledgment.
Ember Giving
Ember Giving drafts each thank-you with the gift's amount and date and, for gifts of money, whether the donor received anything in return. A gift of goods is described with no value. At year end it prints each donor's giving statement. Unlimited users on every tier.
General information for people starting or running a nonprofit, not legal or tax advice. Rules change; confirm specifics with the IRS, your state, or a qualified professional.
Sources: IRS Publication 1771 · IRS, substantiating charitable contributions · councilofnonprofits.org. Verified August 2026.