How to Create a Donation Receipt for Nonprofits (+ Tax Rules)

To create a donation receipt, include your organization’s name and registration/tax ID, the donor’s name, the donation date, the amount (or, for in-kind gifts, a description without a value), and a statement confirming whether the donor received any goods or services in exchange. Use our donation receipt generator to produce one in the standard nonprofit format.

Why the “Goods or Services” Statement Matters So Much

In the US, a gift is fully deductible when the donor got nothing in return. If the donor received goods or services, only the amount above a good-faith estimate of their value is deductible (IRS Publication 1771). This is why a compliant donation receipt explicitly states either “no goods or services were provided in exchange for this donation,” or, if something was provided (like a dinner at a fundraising gala), an estimate of its value — since only the amount above that value may be deductible. Leaving this statement off entirely is one of the most common compliance mistakes small, volunteer-run nonprofits make.

How to Create a Compliant Donation Receipt

1. Add your organization’s name and registration number. Include your registered charity number, EIN, or equivalent, so the receipt reads as official.
2. Enter the donor’s full legal name. This should match the name they’ll use on their own tax filing.
3. Record the donation date and amount. For cash gifts, enter the exact amount; for in-kind gifts, describe the item.
4. Add the tax-deductible statement. State clearly whether anything was given in exchange, and its value if so.
5. Download and send to the donor. Export as a PDF — most donors keep these specifically for their annual tax filing, so make sure every field is complete before sending.

Handling In-Kind (Non-Cash) Donations

For donated goods rather than cash, describe the item on the receipt (e.g. “used office furniture, 3 desks and 2 chairs”) rather than assigning a dollar value yourself — valuing an in-kind donation is generally the donor’s responsibility for their own tax purposes, not the nonprofit’s. Your receipt should simply confirm what was received and when.

Donations With a Benefit Attached (Galas, Auctions, Memberships)

When a donor receives something of value — a seat at a fundraising dinner, an item won at a charity auction, a membership perk — the receipt should give a good-faith estimate of the value of that benefit. Only the portion of the donation exceeding that value is typically eligible to be treated as a deductible gift, and the donor needs this breakdown to file correctly.

Keeping Your Nonprofit’s Donation Records Organized

Number your donation receipts sequentially (see our receipt numbering guide) and keep a running log alongside your organization’s own bookkeeping — this matters both for your own annual filing and for responding quickly if a donor ever needs a duplicate copy.

The Two IRS Thresholds Every US Nonprofit Should Know

• $250 or more — written acknowledgment. A donor can’t claim a deduction for any single contribution of $250 or more without a contemporaneous written acknowledgment from your organization. It must state the amount of cash (or describe non-cash property), and whether you provided any goods or services in return — with a good-faith estimate of their value if you did. “Contemporaneous” means the donor has it by the date they file their return, or the return’s due date (including extensions), whichever is earlier.
• More than $75 with a benefit — disclosure statement. When a donor pays more than $75 and receives something in return (a “quid pro quo” contribution), you must give a written statement explaining that only the amount above the value of the benefit is deductible, and giving a good-faith estimate of that value.

Example: A Gala Dinner Ticket

A donor pays $100 for a charity dinner ticket, and the dinner is worth about $40. Because the payment is over $75 and the donor received a benefit, your receipt should say that the dinner’s estimated value is $40 and that only $60 is potentially deductible as a charitable contribution.

Sample Acknowledgment Wording

For a cash gift with no benefit:

“Thank you for your contribution of $500 received on 12 March 2026. [Organization name] is a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code (EIN 12-3456789). No goods or services were provided in exchange for this contribution.”

For an in-kind gift, describe the property instead of stating a value — for example “3 office desks and 2 chairs, received on 12 March 2026” — and add the same goods-or-services statement. Our donation receipt generator has fields for your EIN and tax status, a cash / in-kind switch and the statement checkbox built in.

Separate Gifts vs. Annual Summaries

Separate contributions are generally treated separately for the $250 rule — the IRS does not combine several small gifts into one. Many organizations send each donor one annual statement listing every gift and its date, which also satisfies donors who give monthly. Whatever you choose, keep a copy of every acknowledgment you send.

Outside the US, the rules are different — for example, UK charities use Gift Aid declarations rather than receipts to claim tax back. Follow your own country’s charity regulator guidance.