Glossary
Donor Management

Acknowledgement Letter

By: Alec Hollingsworth
Updated:  
July 2, 2025

Definition:

An acknowledgement letter is a formal thank-you sent to donors confirming their contribution and providing documentation for tax purposes.
An Acknowledgement Letter is a formal communication sent by a nonprofit organization to a donor, confirming receipt of a donation and expressing gratitude. This letter not only serves as a thank-you note but also provides essential documentation for the donor’s tax records. Typically, it includes details like the donation amount, date, and a statement regarding whether any goods or services were provided in exchange. By issuing acknowledgement letters promptly, nonprofits build donor trust, foster long-term relationships, and comply with legal requirements for tax-deductible contributions. These letters can be sent via email or traditional mail, depending on donor preference and organizational processes.

Key Takeaways

  • Confirms receipt of a donation
  • Required for donor tax documentation
  • Expresses gratitude and strengthens relationships
  • Should include donation details
  • Supports compliance and transparency

Why It Matters

Acknowledgement letters help maintain compliance, build donor trust, and encourage future giving.

Real World Example

A local animal shelter receives a $500 donation from a supporter. Within a few days, the shelter sends an acknowledgement letter via email thanking the donor, confirming the donation amount, and stating that no goods or services were received in exchange. The letter also includes the shelter’s tax identification number and serves as a record the donor can use when filing taxes. This prompt response not only fulfills legal requirements but also makes the donor feel appreciated, increasing the likelihood of future support.

How Keela Helps

Keela simplifies the process of creating and sending acknowledgement letters by offering customizable templates and automated workflows. Using Keela, nonprofits can ensure timely, consistent, and personalized communications with their donors, helping organizations maintain compliance and strengthen donor relationships effortlessly.

Frequently Asked Questions

Is an acknowledgement letter required for every donation?

It’s best practice to send an acknowledgement letter for every donation, especially those over $250, to meet IRS requirements and foster donor relationships.

What information should be included in an acknowledgement letter?

Include the donor’s name, donation amount, date, a statement of goods or services provided (if any), and your organization’s contact information.

Can acknowledgement letters be sent by email?

Yes, electronic acknowledgement letters are acceptable and can streamline the process, making it easier for both your organization and donors.

Related Terms

A/B Test
Accessibility Compliance
Address Verification
Affiliation
Archiving Historical Donor Data
Audit Trail

Are You Ready to Grow Faster and Raise More?

TALK TO US
EXPLORE KEELA'S PLANS