What a donation receipt has to say.

The $250 rule

A donor can't deduct any single contribution of $250 or more unless they have a written acknowledgment from your organization. The responsibility is technically the donor's, but in practice they rely on you to send it.

Each gift is looked at on its own. Two separate $150 gifts don't add up to the $250 threshold, though one annual statement can acknowledge several gifts at once.

What the acknowledgment must say

• Your organization's name.
• The amount of a cash gift (cash, check, card and other money all count as cash).
• For a non-cash gift, a description of what was given, but not its value. Valuing donated property is the donor's job.
• Whether you gave the donor any goods or services in return. If you didn't, say so.
• If you did, a description and a good-faith estimate of their value.
• If the only thing given in return was an intangible religious benefit, a statement saying so.

It can be a letter, a postcard or an email, as long as it carries those items. It doesn't need the donor's Social Security number.

When to send it

The donor needs the acknowledgment by the earlier of the date they file their tax return or the return's due date, including extensions. Sending a receipt right after each gift is the simplest way to be on time.

Gifts over $75 with something in return

When a donor pays more than $75 and receives something in return, like a gala dinner or a concert ticket, you must give them a written disclosure that:

• says that only the amount above the value of what they received is deductible, and
• gives a good-faith estimate of the value of what they received.

Example: a $150 gala ticket that includes a $60 dinner. The deductible part is $90, and the receipt should say so. The IRS can charge $10 per contribution, up to $5,000 per event or mailing, when this disclosure is missing.

Small gifts still need a record

For any cash gift, even $10, the donor needs a bank record or a written communication from you showing your name, the date and the amount to deduct it. A receipt for every gift covers that.

In-kind gifts

Describe donated items, but leave the value to the donor. For non-cash gifts over $500 the donor files Form 8283, and above $5,000 they generally need a qualified appraisal. Your records can still carry an estimated value for your own reporting.

How Donorly helps

• Every check, cash and card gift gets a receipt by email when it's recorded, and in-kind gifts when the items are received.
• You can see which donors got their receipt and when, and which gifts still need one.
• Receipts for check gifts carry an image of the check, with the account number blacked out.

Whatever tool you use, including Donorly, check that your receipt carries every item on the list above before you rely on it.