A nonprofit’s success largely depends on its ability to recruit donors to support its cause. This requires developing relationships with current or prospective donors. Donor relationship management is important to every board member position.
Mastering the art of donor communication is essential. A well-crafted donor acknowledgement letter can transform a one-time contribution into a lasting relationship, encouraging continued support and engagement. Learn how to write a donor acknowledgement letter, and check out our template to kickstart the process.
What is a Nonprofit Donor Acknowledgement Letter?
A nonprofit donor acknowledgment letter, also known as a thank-you letter, is a formal document sent by the organization to officially express its appreciation for a donation.
This letter serves multiple critical purposes: it shows genuine appreciation, provides important tax documentation, reinforces the donor’s impact, and sets the foundation for future engagement.
The IRS requires nonprofits to provide written acknowledgment for any gift or contribution of $250 or more, making these letters a non-negotiable piece of sound governance alongside the other fiduciary duties of the nonprofit board of directors.
The key components of an effective acknowledgement letter include a heartfelt thank-you message, specific details about the gift, a statement on tax deductibility, an impact statement that connects the donation to the nonprofit’s mission, and official contact information from an authorized representative.
To maximize the impact of donor acknowledgment letters, they should be sent to donors as soon as possible.
The comprehensive blueprint for selecting a results-driven board management vendor.
How to Write a Nonprofit Gift Donor Acknowledgement Letter
Follow these steps to write a donor acknowledgement letter.
1. Express Gratitude
Sincerity is a must to show donors their contributions are meaningful. It helps to personalize the letter for each donor. Ensure the donor is referred to by their name or preferred nickname and reference their history of donations to demonstrate the connection between them and the nonprofit.
Sending handwritten letters is a strong way to make messages feel more heartfelt, but if that’s not a realistic option, try to include visual flourishes or other details in digital messages to show your appreciation.
Another method of emphasizing the importance of donor acknowledgment letters is to have an important member of the nonprofit, such as the nonprofit executive director or CEO, sign them.
2. Include Specific Donation Details
The donor acknowledgment letter should include specific details about the donation such as:
- The full legal name of the organization
- The donor’s name
- The specific amount donated to the nonprofit and the type of donation (cash gift, credit card transaction, etc.)
- The date the donation was received
- A statement confirming if the donor got any goods or services in return (This should be outlined in a nonprofit’s gift agreement.)
3. Mention Tax Deductibility
Include a clear statement about your organization’s tax-exempt status. Specify that no goods or services were provided in exchange for the donation, which is crucial for the donor’s tax records. Provide your nonprofit’s Tax ID number to facilitate easy reporting.
4. Describe the Donation’s Impact
When donors give money to a nonprofit, they do so with the expectation that it’s being used for the right reasons. Organizations can assure them by explaining how their donations will be used in the acknowledgment letter. This provides transparency about the nonprofit’s dealings and builds trust in the organization.
You can demonstrate the impact of each donor by combining firm statistics that show how nonprofit programs are supported by the donation and a compelling narrative that makes people feel good about their choice to donate. Using quotes from staff, volunteers, or beneficiaries of the donation helps illustrate the importance of charitable contributions.
5. Sign Off With Contact Information
The conclusion of the donor acknowledgment letter should be an invitation for donors to engage with the nonprofit in ways beyond providing more money. Invite them to upcoming events or highlight other volunteering methods where donors can become more active supporters of the nonprofit.
Close the letter with an authorized signature, including the name and title of the representative. Provide contact information that allows the donor to reach out with questions or to learn more about your programs.
Nonprofit Donor Acknowledgement Letter Template
[Your Nonprofit’s Name]
[Your Nonprofit’s Address]
[City, State, Zip Code]
[Date]
Dear [Donor’s Name],
Thank you so much for your generous gift of [Donation Amount or Description of Gift] to [Your Nonprofit’s Name]. We are incredibly grateful for your support and commitment to our mission of [Brief Description of Mission/Impact, e.g., “empowering youth through education and resources”]. Your contribution will make a significant impact on [specific program or initiative, e.g., “providing essential supplies to under-resourced schools”] and help us move closer to our goals.
For your records, please note that [Your Nonprofit’s Name] is a 501(c)(3) nonprofit organization (Tax ID: [Tax ID Number]), and no goods or services were provided in exchange for this donation, making it fully tax-deductible. Thank you again for your generosity and for joining us in our work to make a difference. If you have any questions or would like to learn more about our programs, please don’t hesitate to reach out.
With heartfelt gratitude,
[Signature]
[Name and Title of Authorized Representative]
[Contact Information]
This template ensures the letter is personalized, acknowledges the gift meaningfully, and includes all necessary information for the donor’s records.
OnBoard Powers Effective Nonprofits
Writing an exceptional donor acknowledgement letter is just one piece of the nonprofit management puzzle. OnBoard’s board management software provides comprehensive tools that help nonprofits streamline communication, manage donor relationships, and drive organizational efficiency.
By implementing robust board management solutions, nonprofits can:
- Transform a governing board’s operational effectiveness
- Centralize donor communication
- Track and manage interactions
- Ensure compliance and transparency
- Securely store documents like annual reports and donation records
Get started with our free Board Meeting Agenda Template.
Ensure effective, efficient meetings with our comprehensive Board Meeting Agenda Template.
Ready to upgrade your board’s effectiveness with OnBoard’s board intelligence platform? Schedule a demo or request a free trial.
About The Author
- Gina Guy is an implementation consultant who specializes in working with nonprofit organizations get the most from their board meetings. She loves helping customers ease their workloads through their use of OnBoard. A Purdue University graduate, Gina enjoys refinishing furniture, running, kayaking, and traveling in her spare time. She lives in Monticello, Indiana, with her husband.
Latest entries
Board Management SoftwareDecember 16, 2024How to Write a Nonprofit Strategic Plan (Step-by-Step)
Board Management SoftwareDecember 13, 2024Nonprofit Donor Management Software: 5 Best Solutions in 2025
Board Management SoftwareDecember 12, 2024How to Find Nonprofit Donors (Step-by-Step)
Board Management SoftwareDecember 9, 2024How to Write a Nonprofit Donor Acknowledgement Letter (+ Free Template)
