Sample Thank You Letter


Writing effective thank you letters

A key point in writing thank you letters is to be sincere but not perfunctory while letting funders know how they have made a difference. For Example:

October 1, 2014

The Dan and Mary Small Foundation
3142 E. Tulsa St.
Oklahoma City, OK 73012

Dear Mr. Small,

Thank you so much for the gift of $10,000 to hire additional tutors for the children. These funds are uncompensated and no goods or services were provided in exchange for this donation.  Additionally, there has been no change in the agency’s I.R.S. tax classification as an organization described in Internal Revenue Service Code sections 501(c)(3) and 509(a)(1), (2), or (3).

We wish you could see the progress that "Joey" has made since we last wrote to you. He has pulled his grades up in spelling from "D's" to "B's". When he brings home his graded papers from his teacher, he always brings them by to show us, pride showing all over his face.

Because of you, we are now going to be able to serve 10 more "Joeys" and watch their eyes also light up when succeeding in school. We would love to have you your our facility and see your gift "at work". We will be calling you next week to see if there is a time convenient for you. Thank you for making a difference in childrens' lives.

Sincerely,

Sue Bells
Executive Director

 

Acknowledgements for Tax Purposes

If you do not receive a separate form from the funder acknowledging no benefits for the gift, make sure you put it in your letter. The IRS changed their regulations in 1994 requiring charities receiving gifts over $250 from individuals or foundations to indicate the deductibility of the gift. Some examples of the language required for acknowledgement include:

There has been no change in our I.R.S. tax classification as an organization described in Internal Revenue Service Code sections 501(c)(3) and 509(a)(1), (2), or (3).  No goods or services have been provided in connection with this gift.

Or

(Organization Name) acknowledges no goods or services were provided in exchange for this contribution of (amount) on (date). There has been no change in our I.R.S. tax classification as an organization described in Internal Revenue Service Code sections 501(c)(3) and 509(a)(1), (2), or (3). 

Or

Thank you for the recent donation of (amount) in support of (grant purpose).  These funds are uncompensated and no goods or services were provided in exchange for this donation.  Additionally, there has been no change in the agency’s I.R.S. tax classification as an organization described in Internal Revenue Service Code sections 501(c)(3) and 509(a)(1), (2), or (3).

Normally, most gifts are fully deductible. The exception is when an individual or foundation receives a benefit as in dinners, auction items, etc. Then the deductible amount is the difference of the value of the item from the price paid. If an auction item is valued more than was paid, none of the gift is deductible.