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3 things to keep in mind when you create annual gift statements

Posted January 7, 2022 by Virginia Davidson

Create annual gift statements

When you send annual gift statements to donors, you provide them with a convenient summary of their charitable contributions. These statements are more than just a helpful document for donors as they complete their taxes, though. They also give your organization an additional opportunity to express gratitude for your donors’ charitable giving.

Here are 3 things to keep in mind as you prepare your year-end tax statements:

1. Annual statements can be a helpful donor stewardship tool, even if you aren’t required to send them.

If you acknowledge gifts as they are received throughout the year, then it’s not required to send annual gift statements at the year’s end. Your organization has already fulfilled its IRS obligation to provide documentation for charitable gifts of $250 or more.

But, even if you’ve already acknowledged gifts, sending annual gift statements can help reinforce relationships with donors and build their trust in your organization.

2. Your year-end statements should be professional and accurate.

The look of your annual gift statements should be in keeping with the other communications you send throughout the year. Include contact information in case your donors have questions. Remember to proofread your template carefully. Typos or spelling errors look unprofessional and may lead your donors to question the accuracy of your records.

3. Provide details for gifts received over the past calendar year.

Your organization may have a fiscal year start date of July 1, but remember that, for tax purposes, your donors need information for the gifts they’ve made during the calendar year.

In your letter, include the date and amount for financial contributions. List the donor’s total giving amount for the year, too.

sample annual gift statement letter
Example Annual Gift Statement Letter

 

Conclusion

If you’re a Little Green Light customer looking for specific instructions on how to create annual gift statements like the one pictured above, we’ve introduced new functionality to help simplify the process for you. Learn how you can quickly generate an annual gift statement in your LGL account.

If your organization takes a more customized approach to your statements, check out these resources in our Knowledge Base. They include step-by-step instructions for creating a more customized mailing, a recorded webinar, and tips specifically for our Canadian customers.

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