IRS donation receipt requirements

A plain-language guide for treasurers of small nonprofits and churches. It covers when a receipt is required, what it must say, and the deadlines, based on IRS Publication 1771.

Last reviewed November 2026. Dollar thresholds that the IRS adjusts each year are noted as such; check the IRS for the current figures.

The short version

• A donor who gives $250 or more in a single gift cannot deduct it without a written acknowledgment from you.
• If a donor pays more than $75 and gets something in return, such as a dinner or event ticket, you must tell them in writing how much of the payment is deductible.
• The acknowledgment must say whether you gave anything in return. The sentence "No goods or services were provided in exchange for this contribution" is the one most often left out.
• For a non-cash gift, describe the item. Do not state its value.
• Donors need the letter before they file their tax return. Sending by January 31 is the common practice.

When a receipt is required

Gifts of $250 or more

The rule sits with the donor, not with you: a donor may not claim a deduction for any single contribution of $250 or more unless they have a written acknowledgment from the organization. In practice the donor depends on you to send one, and a donor whose deduction is denied because your letter was missing or incomplete will remember it.

The $250 test applies to each gift separately. Twelve monthly gifts of $50 do not add up to a gift over $250. Most organizations send a year-end letter to every donor anyway, because it is simpler than sorting donors by gift size and donors appreciate it.

Gifts under $250

For a cash gift of any size, the donor needs either a bank record, such as a cancelled check or card statement, or a written communication from you showing your organization's name, the date and the amount. A year-end letter that lists each gift with its date covers this.

Payments over $75 where the donor received something

When a donor pays more than $75 and receives goods or services in return, the IRS calls it a quid pro quo contribution, and here the duty is yours. You must give the donor a written statement that:

• tells them the deductible amount is limited to what they paid minus the value of what they received, and
• gives a good-faith estimate of the value of what they received.

Example: a donor pays $150 for a ticket to your fundraising dinner, and the meal is worth $65. The deductible amount is $85, and your letter must say so. The IRS can charge a penalty of $10 per contribution, up to $5,000 per fundraising event or mailing, for failing to make this disclosure.

What the acknowledgment must contain

1. The name of your organization.
2. The amount of any cash contribution.
3. A description, but not the value, of any non-cash contribution.
4. A statement that no goods or services were provided in return, if that is the case.
5. A description and good-faith estimate of the value of goods or services you did provide, if any.
6. A statement that the only benefit was an intangible religious benefit, if that is the case. This applies mainly to churches and other religious organizations.

That is the whole legal list. Three more items are not required but are worth including because donors and tax preparers look for them: the date of each gift, a sentence stating your tax-exempt status, and your EIN.

You do not need the donor's Social Security number, and you should not ask for it.

Format and delivery

• No official form. A letter, a postcard or an email all count, as long as the required information is there.
• One letter per gift, or one per year. You may acknowledge each gift as it arrives, or send a single annual statement that lists them all.
• Email is acceptable. A PDF attached to an email works as well as paper.

The deadline

The acknowledgment must be "contemporaneous". The donor must have it by the earlier of two dates: the day they file their tax return for the year of the gift, or the due date of that return, including extensions. Some donors file in late January, so mailing by January 31 keeps you safe for nearly everyone.

Goods and services you can ignore

Some things you give donors do not reduce their deduction and do not need to be valued:

• Token items such as a mug, sticker or calendar carrying your logo, when their cost is small relative to the gift. The IRS sets the dollar limits and adjusts them every year.
• Basic membership benefits for annual memberships of $75 or less, such as free admission to members-only events or discounts in your shop.
• Intangible religious benefits, such as attendance at a worship service.

If you are relying on the token exception for anything substantial, check the current year's limits on the IRS website first.

Non-cash gifts

Describe what was given clearly enough that a stranger would understand it: "Used canoe and two paddles", not "boating equipment". Do not put a dollar value in the letter. Valuing donated property is the donor's responsibility.

Larger non-cash gifts carry extra paperwork, mostly on the donor's side:

• Over $500: the donor files Form 8283 with their return.
• Over $5,000: the donor generally needs a qualified appraisal, and you will be asked to sign Form 8283 to confirm you received the property.
• Vehicles, boats and aircraft worth more than $500: you must give the donor Form 1098-C, usually within 30 days of selling the vehicle or of receiving it if you keep it.

For gifts of stock, real estate or anything unusual, speak to a CPA before you write the letter.

Volunteers

The value of a volunteer's time is not deductible, so do not issue a receipt for hours worked. Out-of-pocket expenses a volunteer pays while serving you can be deductible. If a single unreimbursed expense is $250 or more, the volunteer needs an acknowledgment from you that describes the services they provided and says whether you gave anything in return.

What treasurers most often get wrong

• Missing the "no goods or services" sentence. Courts have denied large deductions over this one omission.
• Stating a value for a donated item.
• Receipting the full price of an event ticket. Only the amount above the value of the meal or entertainment is a gift.
• Counting volunteer hours as a donation.
• Sending letters in March. By then some donors have already filed.
• Sending a separate letter for every gift when one annual letter would do, then missing a gift or two.

A checklist for January

1. Export the year's gifts from your spreadsheet or donor system, one row per gift.
2. Mark any gift where the donor received something, with a description and its value.
3. Mark non-cash gifts with a description and no amount.
4. Write one letter per donor listing every gift. The free letter templates have the wording for each case.
5. Have the treasurer or another officer sign them.
6. Mail or email by January 31, and keep a copy of each.

Source

This guide summarizes IRS Publication 1771, Charitable Contributions: Substantiation and Disclosure Requirements. Read it for the details, the current dollar limits and the rules for unusual gifts.