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During tax season, providing a prompt and easily accessible 501(c)(3) receipt is crucial for fostering long-term donor relationships, ensuring IRS compliance, and maintaining organizational sustainability. A donation receipt serves as written acknowledgment of a donation made to a registered 501(c)(3) tax-exempt organization, enabling donors to legitimately reduce their annual income tax. This process is particularly important for online donations, where uncertainty can diminish the joy of giving. Best practices recommend sending the receipt within 24 to 48 hours of the donation. Additionally, a receipt is mandatory for single donations exceeding $250, especially if the donor received goods or services in return.
