Write a Donation Receipt That Protects Your Business and Keeps Donors Happy

A donation receipt is a legal document, not a polite thank-you note. If you accept donations—whether you’re a nonprofit, a small business running a fundraiser, or a church—you need to issue receipts that satisfy tax authorities. Get it wrong, and your donors can’t claim their deduction, and your organization might face scrutiny. Here’s exactly what to include, how to write one, and the mistakes that trip up most small operations.

What Must Be on Every Donation Receipt

The IRS (and most tax authorities globally) requires specific fields. Missing one can invalidate the receipt. Your receipt must include:

• Organization name and address – Your legal name, not a DBA unless that’s your registered name.
• Donor name – Full name as it appears on their tax return. For businesses, use the company name.
• Date of donation – The exact day the money or asset was received.
• Amount of cash donation – In USD (or your local currency). For non-cash items, describe the property but do not assign a value.
• Statement of goods or services received – If the donor got anything in return (a mug, a dinner, a ticket), list it and its fair market value. Subtract that from the deductible amount.
• A statement that no goods or services were provided – If it’s a pure gift, say so explicitly.
• Your EIN or tax ID – The number the IRS uses to identify your organization.

One concrete example: A donor gives $500 cash and receives a tote bag worth $25. Your receipt shows “$500 donation. Goods provided: one tote bag, fair market value $25. Deductible amount: $475.” That’s clean, defensible, and clear.

How to Write a Compliant Receipt (Step by Step)

Start with a template—never write from scratch each time. Here’s the process:

1. Capture donor info at the point of donation. If you use a form or online payment system, auto-fill name, email, and date. This eliminates typos.
2. Determine if goods or services were exchanged. If you ran a silent auction or sold tickets to a gala, you need a separate line for value received.
3. Calculate the deductible portion. Cash minus value of any benefits. For example, a $100 ticket to a fundraising dinner where the meal is worth $40 means the deductible portion is $60.
4. Include the required statements. Use exact language: “No goods or services were provided in exchange for this donation” or “You received [item] with a fair market value of $X.”
5. Send promptly. Within 24–48 hours is best. Donors expect receipts for tax purposes, and delays create frustration.

A strong template has placeholders for date, amount, and goods description. Keep a digital copy for your records.

Common Mistakes That Cost You and Your Donors

The biggest errors aren’t technical—they’re about judgment and consistency.

Assigning a value to non-cash donations. Never do this. If someone donates a used car, a painting, or office furniture, you describe it (“2018 Ford Focus, VIN 12345”) but do not put a dollar figure. The donor is responsible for valuation. If you assign a value and it’s wrong, you’re on the hook.

Omitting the “goods or services” statement. This is the most common missing field. Even if you gave nothing, you must say so. A receipt that just says “Thank you for your $100 gift” is insufficient. Add the explicit statement.

Lumping multiple donations into one receipt. Each donation date needs its own line. A donor who gave $50 in January and $200 in March needs two distinct entries on the receipt. Don’t combine them.

Using vague language. “Support” or “contribution” isn’t specific enough. Use “cash donation” or “check donation.” For non-cash, describe the item precisely.

Forgetting your EIN. Without it, the donor cannot complete their tax filing. Double-check the number against your IRS letter.

Differences From a Simple Thank-You Letter

A thank-you letter is warm and optional. A donation receipt is cold and mandatory. Mixing them up creates confusion. You can combine both—a receipt with a personal note at the bottom—but the receipt portion must be clear and separate. Never send a thank-you letter without the required fields and expect it to count as a receipt.

When You Need a Receipt vs. When You Don’t

In the US, any single donation of $250 or more requires a written acknowledgment. For smaller amounts, you don’t legally need one, but issuing receipts for every dollar builds trust. Many donors expect receipts for anything over $20. Err on the side of issuing one always. The cost is zero; the risk of a lost deduction is real.

If you accept donations through a third-party platform (GoFundMe, PayPal Giving Fund), that platform may issue the receipt instead. Check their policy. If they do, you don’t need to duplicate it, but keep a record for yourself.

One last thing: keep copies of every receipt you issue for at least seven years. Tax audits can reach back that far, and you need proof that you sent them. A simple spreadsheet or CRM with dates and amounts is enough.