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