Like any nonprofit, churches are required to provide certain documentation when they receive a gift. Because gifts to churches are tax deductible, donors need this documentation to claim their gift on their taxes. Plus, it's just plain the right thing to do! Read on to learn everything that needs to go into a church tax deduction letter and some best practices to consider.
![How to Write a Flawless Church Tax Deduction Letter [+ Samples]](https://donorbox.org/nonprofit-blog/wp-content/uploads/2023/02/Blog-images-2023-Feb-4-1.png)
When parishioners give to your church, they may expect a tax deduction letter. The IRS says that donors can only claim a tax deduction with a gift record.
Today, more people are giving online, and churches can track how much attendees provide at one time and throughout the year. Therefore, sending a church tax deduction letter does not have to be complicated.
There are a few things churches must include. In this article, we’ll break down what’s needed and provide a template to help you get started.
According to the IRS, donors can only claim a tax deduction with a bank record or acknowledgment from the church.
If a one-time gift is over $249, churches must send an acknowledgment, including a statement that says the donor received no goods or services for their contribution. Churches must also provide a written disclosure to a donor who receives goods or services in exchange for a payment over $75.
It’s best practice for churches to send tax receipts to parishioners whenever they tithe or give an offering. The right online donation tool will make this process easier.
Donorbox lets churches send tax receipts with customized email messages immediately after their donation and at the end of the year. The below image shows what a donation receipt email sent for a campaign on Donorbox looks like. We’ll talk about the “how” in detail later!
Send Customized Tax Letters With Donorbox!
When sending a church tax deduction letter, there are several things you must have, including –
Churches must also include the following statements when appropriate –
In addition to these items, your church should also remind donors of how the church will use the gift and how donations like theirs have helped your organization.
If someone donates to a specific cause, like a capital campaign or love offering, churches should include more information on why these projects are necessary.
Tax-deduction letters don’t have to be long, but adding a personal touch helps strengthen relationships between donors and your church.
We’ve included the following 2 samples to give you an idea of how you can personalize and include the required tax information. Click here to download for free.
You can utilize a simple-to-use tool like Donorbox to easily customize your tax receipt emails (with insights from these samples) including necessary information to send to your supporters. Let’s take a look at how!
Many churches are volunteer-run or can only hire part-time staff. If sending tax receipts to parishioners every week and at the end of the year seems time-consuming or nearly impossible for your church, Donorbox can help make this process easier!
Churches can use Donorbox to send a donation receipt email immediately after people donate. This helps supporters file their tax forms on time.
You can set up each of your fundraising campaigns to send these receipts in only a few steps:
You can easily add variables to your email subject and body to personalize the receipt email and include details that are necessary.
After you finish editing, you can also test your receipt by sending it to three other people. It’s always a good idea to get a few extra viewpoints.
Watch this quick tutorial guide to learn the steps in detail –
Create Automated Donation Receipts!
Donors need written documentation to deduct their donations. Year-end receipts sent to parishioners will help them with this process and strengthen their relationships with your church.
Donorbox makes it easy for churches to customize and send year-end receipts to selected or all donors in just a few quick steps –
Send Year-End Tax Receipts - Sign Up!
Read our detailed step-by-step guide to learn more.
Sending donation receipts and year-end tax letters to people can help build and strengthen relationships with your parishioners. Time receipts also help them file their tax forms on time.
With Donorbox, all this can be a breeze – as you’ve seen above, all it takes is a few simple steps and you can fully customize your tax receipt letters to donors!
Donorbox is helping thousands of churches, other faith-based organizations, and nonprofits accept donations online, sell tickets, run membership campaigns, manage donors, and more. Learn about our powerful range of products on the website.
Over 80,000 organizations including churches have raised $2 billion and counting in donations with Donorbox – start your journey today and boost donations!
Learn from our insightful church fundraising blogs at the Donorbox Nonprofit Blog. We also have a number of free templates, samples, and other useful resources over there to elevate your fundraising and donor management efforts. Subscribe to our newsletter to receive a curated list of the best Donorbox resources in your inbox every month!
Kristine Ensor is a freelance writer with over a decade of experience working with local and international nonprofits. As a nonprofit professional she has specialized in fundraising, marketing, event planning, volunteer management, and board development.
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Kristine Ensor