Donors are a vital part to the success of a nonprofit organization. Many nonprofits rely solely on donations from the community to fund the continuation of the organization. Since donors play such a huge role in the operation of a nonprofit, it is very important for your organization to acknowledge their donations for many reasons.
The Importance of Thanking Your Donors
Return the kindness and show your gratitude
Provides an increased awareness for your organization
Developing a personal, lasting relationship will likely lead to continued donations
Repeat donors are very valuable, and tend to match or exceed their prior donation
The IRS requires you provide a written acknowledgement for larger donations and suggests for all donations. See the link below for more information on the IRS requirements.
Make sure your organization is taking the time to thank your donors promptly, no matter how large or small the gifts are. Personalized, hand-written thank you notes will go a long way in showing your donors gratitude and will likely lead to continued donations. There are many other creative ways that you can show appreciation to your donors – create a video, host a donor appreciation event, small gifts, etc. It doesn’t matter how you do it, just say thank you!
For more information regarding the IRS requirements for organizations to provide donors with a written acknowledgement, please click here for our firm’s summary or view IRS Publication 1771.
Please contact Gilliam Bell Moser LLP for more information.