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In this tutorial, Carrie Moore, a tax manager at Jacobson Jarvis, discusses key elements for creating a donor acknowledgement letter. Essential components include the organization’s name, tax ID (EIN), contribution amount, or a description of non-cash donations. The letter must state whether any goods or services were provided in exchange for the contribution. If applicable, a good-faith estimate and description of those goods and services should be included. For religious organizations, the wording should indicate that only intangible religious benefits were exchanged. Donors can receive a separate acknowledgment for each donation or an annual summary, typically sent by January 31st.
