Donors can deduct gifts to a 501(c)(3) organization, but only if they can prove them. Two federal rules govern what your organization puts in writing. One protects the donor's deduction. The other is a duty your organization owes, with a penalty if you miss it. Getting both right is one of the simplest ways to keep donors' trust.
| Rule | Trigger | Who bears the consequence |
|---|---|---|
| Written acknowledgment (IRC 170(f)(8)) | A single contribution of $250 or more | The donor loses the deduction without it |
| Quid pro quo disclosure (IRC 6115) | A payment of more than $75 that is partly a gift and partly for goods or services | Your organization pays a penalty if it fails to disclose |
The $250 written acknowledgment
A donor cannot claim a deduction for any single contribution of $250 or more, in cash or property, without a contemporaneous written acknowledgment from your organization. The IRS points out that your organization incurs no penalty for failing to provide one, but the donor's deduction is lost, so in practice every well-run charity sends them.
What it must say
There is no IRS form. A letter, postcard, email or computer-generated receipt works if it contains:
- the name of your organization;
- the amount of any cash contribution;
- a description, but not the value, of any property contributed;
- a statement that no goods or services were provided in return, if that is the case;
- if goods or services were provided, a description and a good-faith estimate of their fair market value; and
- if the only benefit was an intangible religious benefit, a statement saying so.
You do not need the donor's Social Security number. A typical sentence from Publication 1771 reads: "Thank you for your cash contribution of $300 that (organization's name) received on December 12. No goods or services were provided in exchange for your contribution."
What "contemporaneous" means
The donor must receive the acknowledgment by the earlier of the date they file their return for the year of the gift or the return's due date, including extensions. The IRS notes that charities typically send acknowledgments by January 31 of the following year. You can send one per gift or a single annual summary covering several gifts.
Gifts are counted one at a time
Separate gifts under $250 are not added together. A donor who gives $50 every week does not trigger the rule, even though the yearly total is far above $250. For payroll deductions, each deduction is treated as a separate contribution.
Quid pro quo disclosures over $75
A quid pro quo contribution is a payment made partly as a gift and partly in exchange for goods or services, such as a gala ticket that includes dinner. The donor can deduct only the amount above the value received. When the total payment is more than $75, your organization must give a written statement that:
- tells the donor the deductible amount is limited to the excess of what they paid over the value of the goods or services; and
- provides a good-faith estimate of that value.
The threshold looks at the payment, not the deductible part. Publication 1771's example is a $100 payment for a concert ticket worth $40. The deductible portion is only $60, but disclosure is still required because the payment exceeds $75.
Making the estimate. Treasury regulations allow any reasonable method applied in good faith. For something not sold commercially, such as a private reception in your building, you may value it by reference to comparable goods or services, like the cost of renting a similar hotel ballroom.
Timing and form. The statement can be made when you solicit the gift or when you receive it, and it must be in writing and likely to come to the donor's attention. Small print buried in a larger document may not be enough.
Penalty. Under IRC 6714 the penalty is $10 per contribution, up to $5,000 per fundraising event or mailing, unless the failure was due to reasonable cause.
A community garden sells $150 tickets to a harvest dinner. A comparable catered dinner costs $60, so the garden's good-faith estimate is $60. Each ticket buyer may deduct $150 − $60 = $90. Because each payment exceeds $75, the ticket or receipt must state the $60 estimate and that only the excess is deductible. If the garden sold 200 tickets without any disclosure, the penalty could be 200 × $10 = $2,000, under the $5,000 cap for the event.
Benefits you can disregard
Token items. Under IRS guidance in Rev. Proc. 90-12, adjusted each year for inflation, benefits are insubstantial when the payment is made in a fundraising campaign, you tell the donor how much is deductible, and either:
- the fair market value of the benefits is no more than 2% of the payment or a dollar cap, whichever is less; or
- the payment is at least a minimum amount and the only items provided bear your name or logo (a mug, calendar or poster) and cost, in total, no more than the low-cost article limit.
For taxable years beginning in 2026, Rev. Proc. 2025-32 sets the dollar cap at $139, the minimum payment at $69.50 and the low-cost article limit at $13.90. Unordered low-cost items sent free in a mailing, such as address labels, are also disregarded. The same low-cost article figure appears in the unrelated business income rules for gift items distributed with fundraising appeals.
Membership benefits. Annual benefits given for a payment of $75 or less, such as free admission, gift shop discounts or free parking, can be disregarded.
Intangible religious benefits. A religious organization can state that it provided only intangible religious benefits, such as admission to a religious ceremony, without valuing them. Our guide on churches and 501(c)(3) covers other church rules.
When a benefit falls in one of these exceptions, neither the acknowledgment nor the disclosure needs to describe it.
Noncash gifts
For donated property, describe the item in the acknowledgment, but do not put a value on it. Valuation is the donor's job.
Form 8283 is the donor's form. A donor whose noncash deductions for the year total more than $500 files Form 8283 with their return. For an item or group of similar items claimed at more than $5,000, the donor generally needs a qualified appraisal and must have your organization complete and sign the donee section of Form 8283.
Form 8282 can be yours. If you sell or otherwise dispose of property for which you signed Form 8283 within three years of receiving it, Publication 557 says you must file Form 8282 with the IRS within 125 days and give the donor a copy. Exceptions apply for property valued at $500 or less and property consumed or distributed for charitable purposes.
Vehicle donations
Cars, boats and airplanes have their own rules. If the donor claims a value of more than $500, you must give a written acknowledgment, such as Form 1098-C, that includes the donor's name and taxpayer identification number, the vehicle identification number and the date of the gift. If you sell the vehicle, it must also state the sale date and gross proceeds and certify an arm's-length sale; the donor's deduction is generally limited to those proceeds. The acknowledgment is due within 30 days of the sale, or within 30 days of the contribution if you will make a significant intervening use of the vehicle, materially improve it, or sell or give it to a needy individual well below fair market value. You also file the information with the IRS on Form 1098-C. Publication 4302 describes penalties for knowingly furnishing a false or incomplete acknowledgment.
Check a receipt
Enter a gift's details to see which statements your receipt needs:
The donation receipt checker page explains the tool, and our recordkeeping guide covers how long to keep copies.
Frequently asked questions
Do we need to send receipts for gifts under $250?
The written acknowledgment rule does not apply, but a donor still needs a bank record or a written communication from you showing your name, the date and the amount for any cash gift. Many organizations send a receipt for every gift for that reason.
Can our receipt be an email?
Yes. Publication 1771 says an acknowledgment can be provided electronically, such as by an email addressed to the donor, as long as it contains the required information.
Should we put a value on donated goods?
No. Describe the property in the acknowledgment, but do not state its value. The donor determines the value, with a qualified appraisal when the rules require one.
Do volunteers get receipts for their time?
The value of services is not deductible. A volunteer who has $250 or more of unreimbursed expenses in a single contribution needs an acknowledgment describing the services and stating whether anything was provided in return. Publication 526 explains when those expenses are deductible.
Sources
- IRS: Publication 1771, Charitable Contributions, Substantiation and Disclosure Requirements (Rev. 11-2023). irs.gov
- IRS: Rev. Proc. 2025-32, section 4.33, Insubstantial Benefit Limitations. irs.gov
- Legal Information Institute: 26 U.S. Code § 6115, Disclosure related to quid pro quo contributions. law.cornell.edu
- Legal Information Institute: 26 U.S. Code § 6714, Failure to meet disclosure requirements applicable to quid pro quo contributions. law.cornell.edu
- IRS: Publication 526, Charitable Contributions (2025). irs.gov
- IRS: Publication 4302, A Charity's Guide to Vehicle Donation (Rev. 1-2015). irs.gov
- IRS: Publication 557, Tax-Exempt Status for Your Organization (Rev. January 2025). irs.gov
IRS forms, fees and inflation-adjusted amounts change. We review this page when the IRS publishes new instructions.
501Nonprofit.com is a private company, not the IRS. This page is general information, not legal or tax advice for your organization. Example organizations and figures are hypothetical.
