Quick Fix: Use your accounting software or a free nonprofit template to generate a receipt that includes the donor’s name, your organization’s legal name and EIN, the date, the amount (or item description), and a quid pro quo disclosure. Email it within 30 days of receipt for gifts over $75 (IRS requirement as of 2026).
What should a compliant donation receipt include? At minimum, it needs the donor’s name, your organization’s legal name and EIN, the date and amount (or fair description for non-cash gifts), and a statement about any goods or services exchanged.
A proper donation receipt proves a gift was made and helps donors claim tax deductions. Since 2024, the IRS requires all charitable contributions—cash or non-cash—to be substantiated with written acknowledgment for gifts of $250 or more. For smaller gifts, a bank record or payroll deduction is sufficient, but best practice is to issue a receipt for all donations.
The receipt must include:
- Donor’s name
- Your organization’s legal name and EIN
- Date and amount (or fair description for non-cash gifts)
- Statement that no goods or services were provided in exchange, or a description and good-faith estimate of any benefits received
- Signature of authorized representative (optional but recommended for authenticity)
Nonprofits using donor management systems (e.g., Bloomerang, Neon CRM) can automate receipts, but always verify the output includes all required fields.
How do I create a valid donation receipt step by step? Start with your accounting or donor software, enter donor and organization details, record the amount, include the quid pro quo statement, set the date, then review and send it within 30 days for gifts over $75.
What steps should I follow for cash donations?
- Open your accounting or donor software. Navigate to Receipts > New Receipt (e.g., in QuickBooks Online:
Sales > All Sales > New Transaction > Donation Receipt). - Enter donor details. Input the donor’s full name and address. If using a CRM, link to their profile.
- Add organization info. Confirm your legal name, EIN, and address are pre-filled. Update if needed.
- Record the amount. Enter the exact donation amount. For recurring gifts, note the frequency (e.g., "Monthly, $50, January 2026–December 2026").
- Include a quid pro quo statement. Use this template:
“No goods or services were provided in exchange for this donation. If you received any benefits, their fair market value is $[X].”
- Set the date. Use the date the donation was received or processed, whichever is earlier.
- Review and send. Print or email the receipt. For email, use a subject line like: “Tax Receipt for Your Donation – [Organization Name] – [Date]”.
Send receipts within 30 days for gifts over $75 (IRS requirement as of 2026). For gifts under $250, you may issue a batch receipt monthly if the donor consents.
What about in-kind donations (items or services)?
- Create a new in-kind receipt. In your system, select “In-Kind Donation” or “Non-Cash Gift” as the type.
- Describe the item. Be specific: “Winter coat, men’s size L, navy wool, good condition” or “Pro bono legal consultation, 2 hours.”
- Note the date received. Use the date the item was delivered or service performed.
- Omit monetary value. Do not assign a dollar amount—the donor is responsible for determining fair market value for their tax return.
- Include standard disclosures. Confirm no goods/services were provided in return, unless applicable (e.g., “Donor received 2 VIP event tickets in exchange, valued at $100”).
- Send via email or mail. Include a thank-you note emphasizing the impact of the gift.
In-kind receipts are required for donations valued over $250. For goods valued under $250, a simple thank-you letter is acceptable but not required for tax purposes.
My receipt isn’t working. How do I fix common receipt problems? Check for missing EIN or legal name, verify delivery, or correct IRS-flagged issues by issuing a revised receipt immediately.
What if my receipt is missing the EIN or legal name?
If your receipt lacks your organization’s EIN or legal name, update your donor software settings. In most systems, go to Settings > Organization Info and ensure the EIN and legal name (not DBA) are entered. Re-generate the receipt to include the correct information.
What should I do if a donor says they didn’t receive their receipt?
If a donor claims they never got their receipt:
- Check your email delivery logs (e.g., in Mailchimp or Constant Contact). Look for bounces or spam flags.
- Resend the receipt using a different email address or channel (e.g., mail for high-value donors).
- For CRM users, verify the donor’s email is correct and not flagged as unsubscribed.
As of 2026, email is acceptable unless the donor specifically requests paper.
How do I handle an IRS flag for missing information?
If a donor’s tax preparer or the IRS questions a receipt:
- Issue a corrected receipt immediately with all required elements.
- Document the correction in your system (e.g., “Revised 2026-03-15 to include EIN”).
- Keep both versions in your records for audit trails.
According to the IRS, missing or incomplete acknowledgments are a top reason for denied deductions during audits.
How can I prevent receipt mistakes before they happen? Use a standardized template, automate with donor software, train staff regularly, and enforce a 30-day deadline for all receipts.
Should I use a standardized template?
Create a template in Google Docs, Word, or your CRM with all required fields pre-filled. Include placeholders for donor name, date, amount, and quid pro quo statement. Store it in a shared drive so all staff use the same format.
Can I automate receipts with donor software?
Tools like Bloomerang, Neon CRM, or Network for Good can auto-generate receipts based on donation type. Ensure:
- EIN and legal name are set in settings.
- Email templates include required disclosures.
- Recurring gifts are flagged for annual summaries.
These platforms also send reminders when receipts are overdue, reducing manual follow-up. Honestly, this is the best approach for most nonprofits.
How should I train staff on receipt requirements?
Hold a quarterly training on receipt requirements. Cover:
- When to issue receipts (immediately for gifts over $75).
- How to document in-kind gifts (photos, condition notes).
- Where to store receipts (secure, backed-up digital system).
Assign one staff member to audit 10% of receipts monthly for completeness.
Why set a 30-day deadline?
Set a policy to issue all receipts within 30 days of donation receipt. Use your CRM to flag overdue gifts and automate reminders to staff. This aligns with IRS best practices and improves donor trust.
| Gift Type | Receipt Required | Timeline | Record Source |
|---|---|---|---|
| Cash gift < $250 | Bank record or simple receipt (optional) | Within 30 days | Bank statement, credit card, or nonprofit-issued receipt |
| Cash gift ≥ $250 | Formally acknowledged receipt required | Within 30 days | Nonprofit-generated receipt |
| In-kind gift < $250 | Thank-you letter (optional) | Within 30 days | Nonprofit-generated letter |
| In-kind gift ≥ $250 | Formally acknowledged receipt required | Within 30 days | Nonprofit-generated receipt with item description |
| Quid pro quo (any amount) | Estimated value of benefit must be disclosed | At time of donation | Nonprofit-generated receipt |
For the most current IRS guidelines, refer to IRS Charitable Organizations page (updated as of 2026).
