Donation Receipt

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What Is a 501(c)(3) Donation Receipt?

A 501(c)(3) donation receipt is a document provided by a qualifying charitable organization to acknowledge and express gratitude for a donation made by an individual or entity. These receipts serve as proof of the donation for both the donor and the organization. Some donors may want to use them to itemize deductions when filing a tax return.

Elements Required on a 501(c)(3) Donation Receipt

A well-structured 501(c)(3) donation receipt should these key components:

Name of the Charity

Clearly state the name of your charitable organization, ensuring it is accurate and matches official records.

Date of Contribution

Including the date donation was made helps supporters prove it to the IRS, and helps you with recordkeeping — so you always know when to send a timely follow-up.

Amount ($) of the Contribution

Clearly indicate the monetary value of the donation, both in numerical form and written out in words, for accuracy and clarity.

Acknowledgment of "No Goods or Services Were Provided as Part of This Donation"

This statement is crucial, as it certifies that the donation was made without any expectation of receiving goods or services in return.

What is Not Considered a Deduction?

It's important to note that any goods or services provided by the charitable organization in exchange for the donation are not considered tax-deductible. Donors can only deduct the portion of their contribution that exceeds the fair market value of what they received in return.

How Do I Create a 501(c)(3) Donation Receipt?

Creating a 501(c)(3) donation receipt can be simplified with the help of online tools or templates. Online invoice generators, like the one provided by Invoice Candy, offer user-friendly templates that can be customized to meet your charity's specific needs. You can easily input the required elements and generate a professional and compliant donation receipt.

Tips for Using Donation Receipts

  • Provide donors with timely and accurate receipts, expressing gratitude for their generosity.
  • Keep detailed records of all donations and their corresponding receipts for tax and audit purposes.
  • Ensure that your charity's name and details are up to date and consistent across all documentation.
  • Educate your donors about the importance of retaining donation receipts for tax deduction purposes.

501(c)(3) donation receipts are more than just administrative documents. By proactively expressing gratitude charities can foster transparency, build trust with donors, and continue making a positive impact in their communities. With the help of online tools like Invoice Candy, creating and managing these receipts becomes a seamless and efficient process, allowing you and your team to focus on your core mission instead of paperwork.

Frequently Asked Questions

Donation Receipt FAQ

Generally, for cash donations under $250 a receipt is not required for tax purposes. However, it’s best to maintain a record of all donations, regardless of the amount.

If you get a non-cash donation, such as property or assets, it can be hard to tell how much a donation is worth — and thus provide a donation receipt. At this point, getting a qualified appraisal is your best bet. Note that a formal appraisal is required if the value of a donation exceeds $5,000.

Donations of $500 or more must be recorded in full on the donor's tax return, regardless of whether they receive goods or services in return.

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