What is a 501(c)(3) donation letter?


Quick Answer

A 501(c)(3) donation letter is a letter from a nonprofit organization to a donor. The letter typically identifies what the donor contributed to the nonprofit organization, which might include the declaration of a remitted cash amount or an itemized list of monetary gifts and other tangible goods.

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Full Answer

A 501(c)(3) donation letter also contains earmark stipulations on a donation when applicable. The letter also states whether donations made for a particular purpose. The letter also serves as documented confirmation for the receipt of donations and often gives full descriptions of donated property, while thanking the donor for her contribution.

Using an IRS taxation chart, the donor determines the fair market value of donated items. In turn, the donor uses the letter as proof of donations to a 501(c)(3) organization, which are potentially tax-deductible.

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