All charities agree that cash gifts are the most appreciated and simplest way to receive donations.
Cash gifts include not only currency (hard cash), but also checks, credit card contributions, gift cards redeemable for cash, online payments, and electronic transfers.
Every donor must keep written records of all donations, not depending on their amount. For all donations under $250, donors may use a bank statement or any other record that the cash donation was given.
If a donation is over $250, charities should provide the donor with a written acknowledgement of the received gift. This acknowledgement is often referred to as a “Thank You” letter.
Per IRS requirements, the acknowledgement of a cash donation must contain the following information:
– Name of the organization;
– Date of the received donation;
– Amount of the cash gift;
– Statement that the charity did not provide any good or services in return (if it is true);
– If any goods or services were provided in return for the donation, their description and estimated value should be listed.
Besides following these basic requirements, it is beneficial to include some information on your organization’s mission or accomplishments.
We have prepared a sample “thank you” letter for you to review: Thank You Letter