How, When and Why to Thank Donors
Organizations report that as much as 15 percent of their donor income can be tracked back to a request made when acknowledging a gift.
Not just a courtesy
Besides building relationships, gift acknowledgements serve administrative purposes, too. The Internal Revenue Service requires that all 501(c)(3) organizations inform donors in writing of the value of their charitable contribution for all gifts of $75 or more and when offering a substantial premium or incentive for giving. What’s more, donors who contribute $250 or more must obtain a written document from the charity to qualify for a tax deduction. Charities are not required to acknowledge high-end gifts unless the donor requests it, but it has become common practice because it just makes sense.