Donation receipts are often overlooked in nonprofit fundraising, even though they are important.
It's true that everyone sends them, and they're the legal way for nonprofits to say "thank you" for the money they receive.
However, donation receipts have a deeper meaning and purpose beyond just being a simple acknowledgment.
Donation receipts convey the professionalism of your organization.
They not only help you maintain good relationships with your donors but can also make a big difference in keeping them as long-term supporters.
So, as you plan your next fundraising initiative, consider these best practices to create the perfect donation receipt template.
When should I send a donation receipt?
According to the law, you are only required to provide tax receipts for donations under $250 if a donor receives a good or service in return.
However, it is highly recommended to send donation receipts regardless of the amount.
Donors rely on these receipts for tax-related purposes and it also provides them with a convenient way to contact you when needed.
Additionally, when donors do not receive a receipt for their donation and happen to forget about it, there is a higher chance that they will ask their credit card company to reverse the transaction.
This process, known as a chargeback, leads to the organization incurring higher fees as a consequence.
Typically, many donation platforms have a built-in feature that automatically sends a receipt to donors once they make a contribution.
With the Anedot platform, our customers have the ability to customize receipts by adding their own logos and messages, making the automated receipt process more tailored to their organization.
What should be included on a donation receipt template?
Donation receipt templates should include the following:
- The amount a donor gave
- The organization the donor gave to
- The payment method used
- The donor's contact information
- When the contribution occurred
Payment processors usually include all of these fields by default. If you are a 501(c)(3), you should include your organization's status and EIN.
But, you shouldn't just stop there.
Donation receipts should also include your branding, logo, and relevant information.
For example, let's say you have a membership program that includes a set of benefits.
The list of benefits should appear in the donation receipt so the donor can refer to it in the future.
Here's another example. Let's say you include a t-shirt gift with a donation.
It's important to mention the t-shirt's market value, what size it is, and how long it will take to arrive.
Sometimes, donors expect to get their gifts quickly, but that might not be possible.
So, it's important to be clear about how long it will take to send the t-shirt, and to set proper expectations.
If receipts do not adequately set expectations, you may experience a high refund rate on donation pages that offer gifts.
The important thing to remember is that you shouldn't overlook the design of your donation receipt template.
It's essential to have a consistent look and feel across your emails, landing pages, and donation receipts.
By having a well-designed donation receipt template, you can minimize the number of refunds and improve the likelihood that donors will keep supporting your cause.
If you are considering donation platforms, get a demo from our team!