Gift Acknowledgment
A gift acknowledgment is a formal written communication from a nonprofit to a donor confirming receipt of a charitable contribution. It is required by the IRS for gifts of $250 or more.
A gift acknowledgment is a written confirmation from a nonprofit to a donor documenting a charitable contribution. The IRS requires written acknowledgment for any single contribution of $250 or more before the donor can claim a tax deduction.
Why It Matters for Fundraising
Gift acknowledgment serves two purposes: legal compliance and donor stewardship. A timely, warm acknowledgment letter satisfies IRS requirements while also expressing genuine gratitude that strengthens the donor relationship. The quality and speed of your acknowledgment directly impacts whether a first-time donor gives again.
IRS Requirements
For gifts of $250 or more, the acknowledgment must include the organization's name, the date and amount of the contribution, a statement of whether goods or services were provided in exchange, and a description and good-faith estimate of any goods or services provided. The acknowledgment must be received by the donor before they file taxes for the year.