Donation Acknowledgement Letters 101: How to Write One + Template

When someone donates to your organization, they’re doing more than giving money. They’re saying, “I believe in your mission.” That’s a big deal! And a donation acknowledgement letter is your chance to say thank you in a meaningful way while laying the groundwork for a lasting connection.

Imagine this: a donor gives to your nonprofit after seeing the life-changing stories your org has shared. A thoughtful acknowledgement letter arrives in their inbox the next day, thanking them by name and explaining how their gift will make an impact. That simple act could inspire them to stay connected with your organization for years to come.

In this guide, you’ll learn everything you need about donation acknowledgement letters, from why they matter to what to include, plus tips on writing them effectively. Let’s get into it.

What Is a Donation Acknowledgement Letter?

A donation acknowledgement letter is like a heartfelt thank-you note with extra details. It’s sent by a nonprofit to recognize and appreciate a donor’s gift while also providing important information, like the donation amount and tax details.

Think about it this way: if a donor is excited enough to support your cause, wouldn’t you want them to feel seen and valued? Whether someone gives $10 or $10,000, a thoughtful acknowledgement letter shows their contribution matters.

Here’s an example: Someone donates to a nonprofit that supports children’s literacy programs. They receive a letter thanking them for their $50 donation and explaining how it will help buy books for underserved communities. This way, the donor feels like their gift made a tangible impact, and they are more likely to donate again.

Why Is It Important To Send Donor Acknowledgement Letters?

You might be wondering, “Do acknowledgement letters really make a difference?” The answer is a resounding yes! Sending a timely, thoughtful letter doesn’t just fulfill an obligation; it’s crucial to building relationships with your donors.

Builds Donor Relationships

People like to feel appreciated. A genuine thank-you can go a long way in showing donors they’re not just a number to your organization. By sending a heartfelt acknowledgement, you’re telling them that you see them and that you’re grateful for their support.

Take a small nonprofit that rescues stray animals. Say a donor gives $100 to help cover vet bills, and a week later, they get a thank-you letter with a picture of a rescued puppy they helped save. That simple gesture makes the donor feel connected and appreciated — and more likely to stay involved.

Boosts Donor Retention

Keeping donors is just as important as finding new ones, maybe even more so. Donors are more likely to give again when they feel acknowledged and valued. A personal, timely thank-you letter is the first step in building trust and loyalty.

Think of it like nurturing a friendship: a quick thank-you text after someone does something nice might be enough, but taking the time to write a heartfelt note strengthens the bond.

Encourages Transparency

Nobody likes to feel left in the dark. A good acknowledgement letter helps donors see exactly where their money is going and how it’s making an impact. Transparency builds trust, and trust is the foundation of any lasting relationship.

Supports Fundraising Goals

Here’s something to think about: a donation acknowledgement letter isn’t just about saying thanks. It’s also an opportunity to keep the conversation going. By highlighting the impact of a donor’s gift, you inspire them to stay involved through future donations, volunteering or spreading the word about your cause.

Read more: How To Create an Effective Donor Stewardship Program in 8 Simple Steps

Legal Requirements for Donor Acknowledgement

Did you know that for donations of $250 or more, nonprofits are required to provide written acknowledgement? And no, it’s not about politeness — it’s so donors can claim their tax deductions.

According to the IRS guidelines on charitable contributions, an acknowledgement letter must include the following:

• The name of your organization.
• The amount of the donation.
• The date it was made.
• Whether any goods or services were exchanged.

But here’s the thing: even if a donation doesn’t legally require acknowledgement, sending one is still a good idea. It shows professionalism and helps keep your organization top of mind for future giving.

What To Include in Donor Acknowledgement Letters

Writing a great donation acknowledgement letter doesn’t have to be complicated. You just need to include the right details — and a personal touch. Here’s what every letter should cover:

1. Donor’s name

Address the donor by name. “Dear Friend” doesn’t cut it when you want to build a genuine connection.

2. Organization’s name

Clearly state your nonprofit’s name to make the letter official and avoid confusion.

3. Donation amount and date

Be specific about the gift. Instead of “Thank you for your donation,” say, “Thank you for your generous gift of $100 on October 15.”

4. Type of donation

Was it monetary, in-kind or a matching gift from an employer? Mentioning this shows you paid attention and may be necessary for tax purposes.

5. Tax information

If the donation is tax-deductible, include your organization’s EIN and a statement confirming that no goods or services were exchanged.

6. Mission impact

This is where you make the donation feel personal. How will this gift help your cause? Share a quick example or anecdote to illustrate its impact.

7. Closing with gratitude

End with a warm note of thanks and an invitation to stay connected.

How To Write a Donation Acknowledgement Letter

Writing an excellent donation acknowledgement letter might sound like a challenge, but breaking it into smaller steps makes it manageable and even enjoyable! Let’s walk through how to make your letters feel warm, personal and effective.

Clear Subject Line

First impressions count, right? That’s why your subject line is so important. It sets the tone for the entire message. Imagine a donor opening their inbox and seeing:

• “Your Generosity is Changing Lives — Thank You!”
• “Acknowledging Your Support for [Cause or Mission]”

Short, specific and heartfelt. These subject lines immediately show gratitude while reminding the donor of their connection to your mission.

Message of Gratitude

Think of the opening lines as the handshake: your way of saying a warm, personal thank-you. Address the donor by name and mention their gift specifically. For example:

“Dear Mike,

Thank you so much for your generous gift of $150 to [Organization Name] on November 10. Your kindness helps us bring meals to families in need.”

Doesn’t that feel personal? Starting this way shows donors you’re paying attention and genuinely value their contribution. It’s about making someone feel appreciated.

Donation Receipt

Now for the details. This part doesn’t have to sound overly formal or stuffy. You can keep it simple. Here’s an example:

“For your records, we’ve noted your donation of $150, made on November 10, as a tax-deductible contribution. No goods or services were exchanged for your gift. Our EIN is [number], should you need it for taxes or finances.”

This section not only gives donors what they need for tax purposes but also reinforces your nonprofit’s professionalism.

Impact of the Donation

Here’s where you bring the story to life. Don’t just tell donors what their money will do — show them.

For instance, instead of writing, “Your donation helps us feed families,” you could say:

“Because of your support, we’re able to provide warm meals to families like the Johnsons, who recently found themselves struggling after a house fire. Your gift is part of what helps these individuals get back on their feet.”

See the difference? Including a specific example helps donors see how their contribution plays a meaningful role.

Encourage Future Engagement

Finally, leave the door open for future connections. This doesn’t necessarily mean asking for another donation right away. It’s about building the relationship.

“We’d love to keep you updated on how your gift is making an impact. Follow us on social media or sign up for our newsletter to stay connected to our work.”

This simple invitation helps donors feel like part of your ongoing mission.

Acknowledgement of Donation Letter Template

Need a quick starting point for a donation letter? Here’s a user-friendly template that you can tweak for your own needs:

Subject line: Thank You for Your Donation to [organization name]

Dear [donor’s first name],

Thank you for your kind donation of [amount], which was received on [date]. Your gift means so much to us and helps [specific impact, e.g., fund scholarships for students or provide meals to families].

For your records, we confirm that your donation is tax-deductible. No goods or services were exchanged for this contribution. Our EIN is [number].

Because of your generosity, we’ve been able to [specific example of impact, e.g., deliver 500 meals this month or provide school supplies to 100 children]. Thank you for being a part of our community and believing in what we do.

We’d love to stay in touch! Follow us on social media or sign up for our newsletter to see how your support is changing lives.

With heartfelt thanks,

[Your name]

[Your title]

[Organization name]

Automate Donor Acknowledgements with WildApricot

Manually writing acknowledgement letters is fine for small nonprofits, but what if you’re managing dozens or even hundreds of donations? That’s where automation becomes your best friend.

Imagine this: you receive 200 donations in one weekend during your annual fundraiser. Rather than scrambling to write 200 letters, you could use a tool like WildApricot to send personalized emails automatically.

With WildApricot’s contact database software, you can:

• Store donor information in one place.
• Create custom acknowledgement templates.
• Send personalized letters automatically after a donation.

Automation doesn’t mean losing the personal touch. You can still include the donor’s name, donation amount and even a unique message without spending hours at your keyboard.

Try WildApricot Free for 60 Days

Donation acknowledgement letters are a powerful way to connect, inspire and build lasting relationships. Whether you’re sending one letter or hundreds, the goal is the same: make your donors feel their contributions matter.

By adding personal touches, sharing stories of impact and using tools like WildApricot to streamline the process, you can turn acknowledgement letters into a key part of your donor engagement strategy.

Curious about how automation can save time and strengthen donor relationships? WildApricot offers a free 60-day trial, giving you the chance to explore its features risk-free. Imagine the possibilities: more time to grow your mission, plan impactful events and find new ways to connect with your community. Check out all our features here!