How to create year-end tax statements more easily

Posted December 18, 2018 by Virginia Davidson

year-end tax statements

Sending year-end tax statements provides donors with a convenient summary of their charitable contributions and offers an additional opportunity to express your appreciation. Knowing you’ve been working hard on your year-end fundraising appeal, we put together these simple guidelines and an example to help you create year-end tax statements more easily.

Who needs to send year-end statements?

If you don’t acknowledge gifts as they are received, then you’ll likely need to send year-end statements, which summarize a donor’s gifts throughout the year.

Even if you do acknowledge gifts throughout the year, you might consider sending year-end tax statements to your donors as it’s a convenience to donors and can be used as a stewardship tool.

Do’s and Don’ts for your year-end statements:

Refer to these guidelines as you craft your year-end tax statements.

 

Do Don’t
Include your organization’s name and contact information Forget to proofread your template; typos or spelling errors look unprofessional and may make your donors question the accuracy of your records
Ensure the look and feel of the letter is
consistent with your organization’s other communications
Wait until the last minute to generate your statements. Make a point to test your template, and plan to generate and print your letters at least a few days before you want to get them in the mail
Provide a summary of contributions received during the year, including the date and amount for financial contributions, and list the donor’s total giving amount for the year List the value of in-kind contributions; you may include descriptions of items, but the IRS advises not to include values, as it’s up to the donor to determine the value of in-kind contributions
Express gratitude for the donor’s support Include an ask; the year-end statement should not ask donors to make an additional gift

 

 

Here’s an example of a year-end tax statement to help get you started:

year-end tax statement example letter

Conclusion

Your donors will appreciate a timely, accurate giving summary. Sending year-end tax statements is a good way to close out the past year and start the new year strong. If you’re using Little Green Light to manage your donor data, check out these step-by-step instructions for creating your year-end statements in Little Green Light or register for one of our upcoming training webinars on the topic.

4 thoughts on “How to create year-end tax statements more easily

  1. This is excellent information, but can you tell me what the exact merge fields are to get each gift date and amount for the year?

    1. Hi Ashlee,

      Thanks for the feedback on the article. You can connect with a member of our support team for assistance with identifying the correct merge fields for your letter.

      Thanks,
      Timi

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