As a nonprofit, the receiving and tracking of your donations is vitally important, both from a revenue standpoint and for nurturing donor relationships. But did you realize the IRS and the North Carolina Charitable Solicitation License Section of the Secretary of State’s Office both require specific information in the acknowledgments you provide to your donors?

IRS requirements

The IRS has varying requirements depending on whether the donation is monetary or property and based on value.

Donation Receipts Table

Example of Written Acknowledgement:

  • “Thank you for your cash contribution of $500 to (Organization Name) received December 20, 2022. No goods or services were provided in exchange for your contribution.”

See IRS Publication 1771 for more information.

North Carolina Charitable Solicitation License disclosure requirements:

If your organization holds a charitable solicitation license in North Carolina, you are required to place information about your license on all printed materials related to donations. Examples of places you have to include information about your license are:Donation Receipts

  • Requests for donations
  • Advertisements for fundraisers
  • Receipts for donations
  • Written confirmations of donations
  • Reminders about contributions

You must include the following statement on all solicitations and acknowledgements. It must be printed in type that is a minimum of size nine (9) font and made conspicuous by underline, a border, or bold type:

“Financial information about this organization and a copy of its license are available from the State Solicitation Licensing Branch at 919-807-2214 or 888-830-4989 for NC Residents. The license is not an endorsement by the State.”

Most Organizations make an effort to send all acknowledgements by January 31 of the year following the donation to ensure donors receive the information for their personal tax records.

For more information, please contact Gilliam Bell Moser LLP.