Direct Mail

Donor Acknowledgement Letter

By 1 January 2024June 7th, 2024No Comments
print and mail collection letters

Donor Acknowledgement Letter: How to Write Engaging Letters to Improve Retention Rates?

In 2020, UK residents donated nearly £11.3 billion to charity! Undoubtedly, people are happy and willing to donate if they can find a trustworthy nonprofit or charitable organisation. In return, they only expect a donor acknowledgement letter that portrays gratitude and helps them get tax deductions!

with compliments slips

Yes, a donation acknowledgement receipt, card, or letter allows the donors to file taxes and deduct the donated amount by a specific limit. But the advantages of sending a donor acknowledgment letter run beyond that. 

  • This letter helps the organisation thank donors personally and show they value these contributions. 
  • It provides all the necessary information, like the amount, date, and type of donation. 
  • It helps build emotional bonds among donors and charitable trusts by depicting how their donations impact their operations. 

Curious to learn how to write a donor acknowledgement letter sample the right way? Read on to know its purpose, types, and best practices that can help you drive more contributions and improve your brand image!

What Is a Donor Acknowledgment Letter?

A donation acknowledgment letter is also a thank-you message wherein a charity or nonprofit states that they have received the contribution! Often, this letter also serves as a receipt to help donors keep a record of their donations during a specific year. 

All donors must get an acknowledgement of donation, irrespective of the size and type of their gifts. It is an excellent way to express your gratitude and build rapport with donors, encouraging them to continue their relationship with you for several years. 

Remember that nonprofits are legally obligated to send donor acknowledgement to people who contribute more than a specific amount. It is better to send a letter or receipt to everyone instead of differentiating based on amounts—and convert one-time donors into long-term, loyal relationships

Why Is It Crucial to Send a Donor Acknowledgement Letter?

Sending donor acknowledgements to fulfil several purposes for a nonprofit organisation, including

It Informs the Donor the Charity Successfully Received Their Gifts

You don’t want your donors to keep thinking about whether you received the contribution. Moreover, you do not want to deal with a hundred calls or emails asking for a receipt. A charity acknowledgement letter clears such confusion and informs donors that you duly received the donations, and they can record the same. 

It Helps Show Donors You Appreciate Them

Thanking donors personally and appreciating their kindness is crucial in maintaining charity-donor relationships. Sending a gift acknowledgement letter is the least you can do from your side to value donors and show how much you care. 

It Allows You to Update Donors About How You Use Their Donations

A donor acknowledgment letter enables you to update donors regarding how you put their contributions to use. Most donors already know the cause they are contributing to, but it is still your job to give a detailed summary. It helps donors understand how their contributions help and how your organisation cannot survive without them. 

It Helps You Retain Donors

Not all donors are regular contributors because:

  • They might donate to other charities. 
  • They might donate only once or twice a year. 
  • They only contribute to getting a tax deduction. 
  • They do not feel that donating to your charity is worth it. 

But you can change these things by using an effective letter acknowledging receipt of donation—that helps you retain donors for a long time. 

You can showcase your functions by including real-life examples and statistics in your donor acknowledgment letter or receipt. Moreover, you can add links to your website or YouTube channel wherein donors can check out how you help people. 

It Is a Legal Requirement

The law requires charities and nonprofits to provide a charitable donation acknowledgement letter or receipt to donors who contribute beyond a specified amount. They can send one letter for all donations throughout the year or separate ones immediately after they donate. 

Is There a Deadline to Ship a Donation Acknowledgement Letter?

In the UK, people file their taxes between 6 April and 31 January. Hence, you must send your acknowledgement receipt of donation before the 6 April strikes to help donors calculate their tax deductibles and proceed with paying the taxes. 

There is no specific deadline for nonprofits to send acknowledgement letters. But it is their responsibility to provide donors with one at the right time. 

The best practice is to print and mail letters instantly after you receive a donation. It ensures you do not forget to send the letter to any donor, creating issues later. Additionally, the contribution is fresh in the minds of the donors, making your donor acknowledgment letter more impactful!

What to Include in an Effective Donor Acknowledgment Letter?

At PostGrid, our clients ask us questions, like what makes an excellent acknowledgment letter or how to ensure a response. Here is our answer:

Your Nonprofit’s Legal Name

Always include your nonprofit organisation’s legal name on the top of the acknowledgement letter for receiving donation from a contributor. Or you can print your message on letterhead, carrying your name, contact details, and address. 

Your Donor’s Name

The next thing you must add to your sample donor acknowledgement letter is your donor’s full name to make your letters personalised. Avoid using phrases like “Dear Donor” or “Dear Contributor” that give your message a generic look. 

Instead, make your donors feel they care enough to take the time and tailor every letter. 

Donation Date

It is one of the most crucial aspects of a nonprofit donation acknowledgement letter for legal reasons. The donors must have accurate records of when they donated a specific amount or gift so they can show it in their tax documents for the relevant year. 

It also helps you calculate the donations you receive yearly—to draft precise reports and declare your revenue correctly. 

A Short Description of the Contribution

If you get donations in cash, mention it in your donor acknowledgement letter with the correct amount. For in-kind donations, you can describe the type of gift in the most accurate way possible. 

Stock contributions must include the company name and number of stocks. Avoid adding the fair market value because it is unnecessary to mention it in an acknowledgement card for donation or receipt. 

A Statement About Returned Gifts

Sometimes, a charity may offer gifts to its donors in exchange for the donations. For example, it might offer tickets to a religious fest, museum, or gala. In such cases, your sample donation acknowledgement letter must carry the estimated value of the returned goods or benefits. 

If you did not provide donors with anything in return, you must also mention that in the receipt. 

We understand that most nonprofits do not have the time or necessary resources to manage these things. PostGrid’s print and mail API can help them draft a response-driving donor acknowledgement letter in an automated way. Our affordable rates, fast turnaround times, and advanced features make it an excellent deal for all nonprofit and charitable organisations. 

How to Structure Your Donor Acknowledgement Letter Properly?

Before we get into the donation acknowledgement letter template and sample, let us discuss how to structure your letters correctly. 

Remember to keep your message short and sweet that donors would want to read instead of a lengthy one that they only go through roughly!

Mailing Address

Start with the donor’s name and mailing address. You can align these details on the left side to give your acknowledgement receipt for cash donation or letter a professional appearance. 

Use the correct Royal Mail address format and standardise it properly to ensure the contributor gets your acknowledgement receipt for donation accurately!

Subject Line

Writing the subject line is optional, so do not stress too much about the same. However, align it towards the left instead of the centre if you want to include it.

Salutation

The next part of your donor acknowledgement letter is the salutation- which should appear below the subject line. 

Remember to use the appropriate titles and personalise the salutation to make your message leave a positive impression. 

Introduction

The introductory paragraph should be short and to the point. Mention a few details, like your organisation’s mission and how you would like to thank the audience for their donations. 

If you have received donations from the same person in the past, you can thank them for their overall support. The introduction of your donor acknowledgement letter sample should set the tone for the rest of the message or provide a summary.

Body

Your second paragraph should have more information about the donations and how you use them. Discuss the influence donors have on your institution’s operations and the progress you make regularly. 

Try using donor-centric language in your donor acknowledgement letter. For example, use the word “you” instead of “we” and incorporate stories of other donors like them. 

Your sample acknowledgement receipt of donation can include reviews or quotes from donors or people who benefit from their gifts. These factors give your audience something to relate to and which persuades them to keep contributing towards your cause. 

Conclusion

The last paragraph of your donation thank-you letter for tax purposes should also be short. Reinstate your appreciation and encourage people to contact you if they have questions or enquiries. 

Please note: Do not add an appeal for another donation in your donor acknowledgment letter or receipt. You can do so in another letter, but this message should be about thanking the person and making them feel valued. 

Closing

Add your name and signature at the end to end your letter professionally. You can add the details in the enclosures if you want to attach a document.

Many charities draft a personal acknowledgement letter talking to their audience in a light tone and attach the formal receipt as an enclosure. 

Donor Acknowledgement Letter Template

Now that you know how to draft a thank-you letter for your donors, find the charitable donation acknowledgement letter template below for reference:

[Organisation name]

[Mailing address]

[Contact number and email address]

[Date]

[Donor’s full name]

[Their mailing address]

[Subject line]

[Salutation]

[Introductory paragraph – donation amount, type, and date]

[Body of your donor acknowledgement letter – talk more about the first paragraph and communicate your primary message]

[Closing – End the letter by thanking the reader again and asking them to keep in touch with you]

[Signature]

[Enclosures]

Sample Donor Acknowledgement Letter for Different Types of Contributions

Below, we have included two donation letter samples for your reference regarding using the same format for different donors. 

#1 Donor Acknowledgment Letter Sample for First-Time Donors

[Letterhead]

Date: 10 November 2024

Harry Relish

820 Albert Square

MANCHESTER

WIP 6HQ

Dear Mr Harry, 

We hope you are doing well! Our organisation would like to thank you for your donation- dated 1 November 2024, amounting- £60.52. As your first-time donation, we would also love to welcome you to our ‘Work for the Kids’ family and tell you how much we appreciate your effort. 

Our institution has been helping children of all ages across the country educate themselves and shape their careers. These are extraordinary kids whom we love and cherish each day of our lives. But, unfortunately, they did not have anyone looking over them. 

Your donations help them have a roof over their heads and study well, which pushes them to gain the status they deserve in society. Consider our donor acknowledgement letter a thank you from all the 4,800 children we have helped so far!

We have attached your formal acknowledgement receipt for cash donation with this letter. Again, thank you so much for your contribution. It is people like yourself who keep us going and who prove that humanity still exists. 

Yours sincerely,

Austin Blake

[Signature]

#2 Church Donation Acknowledgment Letter Sample

St Regis Church

17 Agincourt Drive

SOUTHAMPTON

SO53 5PD

Date: 10 November 2024

Delilah Williams

561 Main Street

LONDON

E17 7LD

Subject: Donor acknowledgment letter. 

Dear Mrs Delilah, 

It is our pleasure to announce that our church turned 20 last month. So far, we have served at least 20,000 community members and transformed the lives of 50,000+ kids and those in need. Your gift contributions worth £800 during the year have been very helpful and brought us closer to our goal. We want to take this opportunity to thank you for thinking about us and contributing regularly. 

Our church’s mission is- Give, and the Lord shall give to you! We are proud that our congregation members take this statement seriously and do their best to return. 

As one of the people we helped using your donations said- “St. Regis is a sacred place for us, and we cannot forget how this church helped us in our darkest times. I am so grateful to every member of this church.” 

You are part of something big, and every contribution from your end, big or small, makes a massive difference. 

Thank you once again for your kindness. You can contact us at [email protected] for more information or in case of any concerns!

Yours faithfully,

Pastor John

[Signature]

Best Practices to Help You Make Your Donor Acknowledgement Letter More Engaging

Here are the top seven best practices you may use to make your letters more heartfelt and influential:

#1 Send Your Donation Acknowledgement Letter from a Person, Not Organisation

Almost all nonprofits make the common mistake of writing their thank-you letters from the institution instead of a person. It does the job but lacks a personal touch and appreciation. 

It is advisable to send your letters from one person, perhaps a top-ranking employee at your institution or the founder. 

#2 Use a Friendly Tone

Receiving your sample donor acknowledgement letter should make donors feel good and warm. Try using an easy-flowing, friendly tone instead of sounding stiff. Your message must not feel like you copied and pasted a script. Make it tailored according to your past interactions and relationships with the contributors. 

For example, if you were in touch with the reader for a long time, your donor acknowledgment letter should reflect the same. New donors must get a warm welcome and encouragement to donate to your institution frequently. 

Try using phrases, like

  • With your help
  • It is not possible without you. 
  • Thank you for your continuous support. 
  • Your gift or your donation. 
  • Because of your contribution, etc. 

#3 Include Real-Life Stories and Testimonials

Donors would love to hear reviews from the people they have helped with their donations. Thus, try interviewing these people to collect real-life testimonials and add them to your acknowledgement of donation to nonprofit or charity. 

Add links to your website or videos where donors can visit and see more stories. Always give adequate access to your donors to view your works for real or through videos and articles. 

#4 Add Appropriate Images

The visuals of your donor acknowledgment letter can make a broad difference to the responses you get. Thus, add relevant imagery with bright colours and attention-grabbing headlines to your messages. 

We know how adding images to your letter does not seem ideal. Hence, nonprofits add marketing inserts, like postcards, flyers, etc., for this additional content. 

#5 Keep Your Donor Acknowledgment Letter Concise

It is advisable to send single-paged letters only because donors like getting short messages. They are more likely to read and appreciate these letters than lengthy ones with less impact. 

Do not turn your letter to acknowledge memorial donation into a report of how you spend the funds. Your goal should be to provide a summary and leave the details in the annual report you can send via email. 

#6 Stay Connected

Thank your donors when they contribute, but remember to keep the conversation going. Your donor acknowledgement letter should not denote that the person has fulfilled their responsibility entirely. Instead, connect them with your organisation by telling them what comes next. 

Do you have an event next month? Invite your donors to visit and show them ongoing support. A company sponsored a marathon to help you raise funds? Inform your contributors about this update. 

Moreover, you may request readers via your donor acknowledgement letter sample to follow you on social media and subscribe to your newsletter. Create a vast network that binds all the donors to your institution and helps you keep the donations running throughout the year!

#7 Automate Your Donor Acknowledgement Letter Mailings

Managing expenses and time during a direct mailing campaign is complicated. So why not automate everything and save money? 

Direct mail automation solutions like PostGrid can help nonprofits send fundraising letters, acknowledgements, event invites, etc. They allow these organisations to streamline their mailing activities and get the highest responses possible!

How PostGrid’s Print and Mail Services Make Sending a Donor Acknowledgement Letter Effortless?

Nonprofits can avail of numerous features and benefits using PostGrid’s print and mail API that assists them from the start to the end. Here’s how:

Integrating PostGrid’s API into their donor-management CRMs, nonprofits and charities can have a handy solution to send their correspondence. They can send a fundraising postcard, receipt, or donor acknowledgement letter at their fingertips without doing anything manually. 

PostGrid offers professionally-built templates to help them design their mailers in a few minutes. Nonprofits can add their preferable personalisation and branding features to make their mail items unique and interactive. 

Moreover, PostGrid’s print and mail solutions allow organisations to produce and ship their letters and other items in one go—saving time, effort, and money!

One of our nonprofit clients wanted to send a donor acknowledgement letter to at least 2,000 donors. PostGrid enabled them to automate this bulk mailing campaign with several advanced features, like

The result was better than predicted—the nonprofit organisation could ship their donor acknowledgement letter sample in thousands and receive a 50% response ratio. Yes! Nearly 1,100 people responded to their message, allowing the institution to boost relationships and increase brand visibility. 

The best part is that they could achieve all their objectives at the lowest possible rates. PostGrid offers flexible plans to suit the needs of all organisations or businesses, enabling them to send as many mailers as they need without exhausting their budgets!

Drop an email to [email protected] to get a quote and talk more about sending a donor acknowledgement letter or other items to your donors!

Ready to Get Started?

Start transforming and automating your offline communications with PostGrid

SIGN UPREQUEST A DEMO

Explore Direct Mail

How to Send Certified Mail Online