What makes a donation receipt valid
A donor can only deduct a gift of $250 or more if they have a written acknowledgment from your nonprofit. The IRS spells out exactly what it must contain in Publication 1771, and it is short.
The amount, or a description of what was given. For cash, state the dollar amount. For a non-cash (in-kind) gift, describe the item but do not put a value on it. What the item is worth is the donor’s call, not yours.
A statement about what the donor got back. If they received nothing in return, say so plainly. If they did receive something, like a dinner or merchandise, you must describe it and give a good-faith estimate of its value, because only the amount above that value is deductible.
The $75 quid pro quo rule. When a donor pays more than $75 and gets something in return, the written disclosure of the deductible amount is required, not optional. This tool works out that deductible amount for you.
Send it on time
Get the acknowledgment to the donor by the time they file their return. Sending a receipt right after the gift is the friendliest approach, and a year-end summary letter by January 31 is a common backstop. A prompt, warm thank-you also does more for keeping donors than almost anything else.
Common questions
When does a nonprofit have to give a donation receipt?
A donor needs a written acknowledgment from your nonprofit to claim a deduction for any single gift of $250 or more (IRS Pub 1771). It is good practice to acknowledge every gift, but $250 is the legal line. Send it by the time the donor files their return, and by January 31 of the next year is a safe habit.
What has to be on the receipt?
The organization’s name, the amount of cash or a description (not the value) of any non-cash gift, and a statement about whether the donor received anything in return: either that no goods or services were provided, or a description and good-faith estimate of their value. This tool includes each required element.
What is the $75 quid pro quo rule?
If a donor pays more than $75 and gets something in return, like a gala ticket or a mug, you must tell them in writing that only the amount above the value of what they received is deductible, and give a good-faith estimate of that value. This tool calculates the deductible amount for you when you enter what the donor received.
Should we state the value of a donated item?
No. For non-cash (in-kind) gifts, describe the item but do not state its dollar value. Valuing the donation is the donor’s responsibility, and for gifts over $5,000 they generally need a qualified appraisal. Your receipt describes what was given, not what it was worth.
Is this a legal document or tax advice?
It produces a standard acknowledgment letter using the elements the IRS describes in Publication 1771. It is general information, not legal or tax advice. For unusual gifts (property, securities, vehicles) or large non-cash donations, check the IRS rules or a professional.