Are you confident that your nonprofit’s donation tax receipts are helping donors maintain their records and keeping you compliant with IRS regulations?
Donation receipts are more than just formalities — they’re essential tools to maintain transparency, safeguard your organization, and support donor loyalty. With an IRS-compliant receipt, donors can claim the tax deductions they’re entitled to, strengthening their connection to your cause and motivating future contributions.
From prominently featuring your nonprofit’s employer identification number (EIN) to crafting compelling impact statements, this guide walks you through everything you need to know to write donation receipts that benefit both your organization and its donors. It includes:
With the right practices and tools, your nonprofit can streamline the process of issuing tax receipts, so you can stay compliant while enhancing the donor experience. From standard donation software to a nonprofit thrift store POS, your organization’s software makes it easy to generate accurate, IRS-compliant receipts for every gift. Let’s dive in.
A donation tax receipt, or donation receipt, is an official document a registered 501(c)(3) nonprofit provides to a donor as confirmation of a charitable gift. These receipts are written records that enable donors to claim tax deductions for their contributions.
Proper donation receipts include transaction details that meet IRS requirements, such as your nonprofit's EIN and donation amounts or descriptions. Donation tax receipts can also contain thank-you messages and impact statements to enhance their usefulness to donors.
Many nonprofits automate the process of issuing receipts through their donation software, which populates each receipt with relevant details about the donor’s unique contribution. While the IRS only requires receipts for gifts of $250 or more, it’s good practice for organizations to issue receipts for all donations.
In the U.S., donors make an average of two donations each year. Prompt, compliant receipts maximize the impact of each gift while reinforcing trust in your organization. This practice meets legal requirements and leaves donors with a positive impression of your nonprofit’s professionalism, making them more likely to contribute again in the future.
Beyond fulfilling documentation requirements and enhancing the donation experience, here are key reasons why your nonprofit should issue donation receipts:
By consistently providing clear, compliant receipts, your organization strengthens relationships, builds trust, and paves the way for more future donations.
As a tax-exempt organization, your nonprofit must issue donation tax receipts for charitable contributions of $250 or more. Meeting IRS standards helps you avoid penalties or legal issues, so you can maintain your tax-exempt status. This also ensures donors can claim tax deductions without issues.
Here’s a rundown of key elements to include when writing donation receipts based on IRS requirements:
For in-kind contributions of goods or services, donors must determine the fair market value (FMV) of their gifts. Let’s say you run a nonprofit thrift store like Goodwill or Habitat for Humanity ReStore. Your team would describe the donated items (e.g. “one wooden dining table with four chairs, minor scratches”) on the receipt. Then, your donors could use your thrift store’s prices for those items to determine the FMV of their contributions.
Follow these requirements for any donation you receive, not just those of $250+. This allows donors to keep accurate documentation for tax purposes while reinforcing your organization’s professionalism.
Let’s explore how to write a donation receipt that meets legal requirements and engages donors.
Specialized software like ThriftCart makes generating donation tax receipts for your nonprofit both efficient and accurate. ThriftCart is designed to simplify the donation process by ensuring you promptly acknowledge each contribution.
Our platform offers helpful features like:
Our system also makes it a breeze to level up customer support for your thrift store. Generate sales receipts, prompt cashiers to request donations, and encourage buyers to round up their purchases and donate their change to your organization.
To learn about the full capabilities of ThriftCart, check out how one happy client used our software to exceed their donation goals:
One of the driving forces behind a donor’s decision to give is affinity for a cause. eCardWidget’s guide to donation thank-you letters explains that donors want to know how their gifts are used to ensure their funds go to a trustworthy organization. Infusing concrete outcomes into your donation receipts emotionally connects donors to their impact.
Here are some examples of short impact statements and quotes you could include:
These short impact statements infuse appreciation into donation tax receipts, which helps supporters envision their concrete impact and displays your gratitude for their gifts.
A clean layout organizes information like donation amount and contact information so donors can quickly locate key details. This also contributes to your nonprofit’s professional image. Use a simple, legible font (like Arial, Times New Roman, or Calibri) to ensure donors can easily follow the information without any confusion or strain.
Also, make sure there’s sufficient color contrast to improve readability. For e-receipts, you need a minimum color contrast of 4.5:1 based on the international Web Content Accessibility Guidelines. For context, black text on a white background offers the highest color contrast possible, 21:1. The lowest possible contrast occurs when the text and background colors are identical, 1:1. Use a contrast checker tool like WebAIM Contrast Checker to ensure your ratio meets guidelines.
Your donation receipts can still infuse your nonprofit’s brand, like with your official colors and logo — just make sure everything is well-structured and readable.
Remember: The easiest option is to use software that automates your donation receipts. This way, you won’t forget important elements like your nonprofit’s EIN — but you can create your own receipts with templates and basic software like Microsoft Word, too. While this method can work for smaller organizations with low donation volumes, generating individual receipts can be labor-intensive, prone to compliance oversights, and make it harder to track receipt history.
That said, here are some templates for writing donation receipts. Keep in mind that these are just starting points, and it’s up to your team to ensure that you follow IRS guidelines.
Since 67% of all nonprofit contributions come from individual donors, it’s essential to give them a receipt that fulfills IRS requirements and strengthens their connection to the cause.
A well-designed receipt can foster trust and encourage repeat donations. Include the donation amount, date of gift, statement about whether any goods or services were provided in exchange, and your nonprofit’s tax ID prominently.
Use the following donation receipt template as a starting point for monetary contributions, including cash, checks, credit card payments, and electronic transfers.
Financial Donation Tax Receipt
Receipt ID: [Unique Receipt Number or Code]
Donor Information:
Name: [Donor's Full Name]
Address: [Donor's Address, City, State, ZIP]
Email: [Donor's Email Address]
Donation Details:
Date of Donation: [Donation Date]
Donation Amount: $[Donation Amount]
Method of Donation: [Credit Card, Check, Online Transfer, etc.]
Purpose of Donation:
Your generous gift supports: [Program/Project, or “General Support”]
Impact Statement:
Thank you for your contribution! Your donation helps us [short impact statement, e.g. “provide meals for families in need” or “support wildlife conservation”]. Together, we are making a difference.
IRS Disclosure:
No goods or services were provided in exchange for this donation. Please retain this receipt for your records. It serves as documentation for tax purposes as required by the IRS.
Nonprofit EIN (Employer Identification Number): [Your EIN]
For questions, please contact us:
Phone: [Nonprofit’s Phone Number]
Email: [Nonprofit’s Email Address]
Website: [Nonprofit’s Website URL]
Many organizations accept in-kind donations, but food pantries and nonprofit thrift stores source inventory from donated goods, making an in-kind donation template especially useful.
The following template is designed for non-monetary gifts, such as goods (e.g. goods, clothing, technology), property (e.g. venue space), or services (e.g. marketing or accounting assistance).
It includes elements similar to those in the financial receipt template, such as space for donor information and your nonprofit’s EIN. However, it differs by including factors like a chart where donors can provide descriptions and good-faith estimates of their in-kind contributions, rather than specifying an exact monetary amount.
In-Kind Donation Tax Receipt
Receipt ID: [Unique Receipt Number or Code]
Donor Information:
Name: [Donor's Full Name]
Address: [Donor's Address, City, State, ZIP]
Email: [Donor's Email Address]
Donation Details:
Date of Donation: [Donation Date]
Description of Items Donated:
| Item Description | Quantity | Condition | Estimated Value |
| [Description of Item 1] | [Qty] | [New/Used/Etc.] | [Value] |
| [Description of Item 2] | [Qty] | [New/Used/Etc.] | [Value] |
| [Description of Item 3] | [Qty] | [New/Used/Etc.] | [Value] |
Impact Statement:
Thank you for your contribution! Your donation helps us [short impact statement, e.g. “stock our thrift store with quality items’ or ‘provide school supplies to children”].
IRS Disclosure:
No goods or services were provided in exchange for this donation. The donor is responsible for assessing the fair market value of the donated items. This receipt serves as documentation for tax purposes as required by the IRS.
Nonprofit EIN (Employer Identification Number): [Your EIN]
For questions, please contact us:
Phone: [Nonprofit’s Phone Number]
Email: [Nonprofit’s Email Address]
Website: [Nonprofit’s Website URL]
Issuing tax receipts may not be the most exciting part of your work, but it’s necessary to comply with laws and provide donors with sufficient documentation. Remember: The right donation tools can make it easy to create your tax receipts, so you can focus more on soliciting donations and fulfilling your mission.
To learn more about accepting and managing donations effectively, explore these free resources: