Create an Online Donation Receipt that Leads to More Donations

Who is the email from? Use a real person’s name, typically your Executive Director or the person in charge of acknowledging gifts. If you use a ‘from’ email such as info@yourorganization or donationreceipt@yourorganization, the email will, from the very first moment the donor lays eyes on it, feel impersonal, like a form letter. That’s not what you want because it leaves the donor feeling cold. Set up and use an email with a person’s name so that it feels more personal.

An interesting subject line. If you send an email with a boring subject line, it probably won’t even get opened. Some of my favorites: Regarding your gift, How we used your gift, From the bottom of our hearts, You really made a difference, and We couldn’t wait to put your gift to work.

Subject lines with questions have higher open rates. You could go with, Do you know you are a hero? or Could your gift have come at a more important time? 

Personalized salutation. It goes without saying, you should not use Dear friend on a personalized donation receipt. Organizations vary on whether they use Mr. and Mrs. or first names and it depends mostly on your nonprofit’s brand. I generally use first names because if you gave my organization money, we’re friends and I can call you by your first name.

But we have some donors who are very traditional. In their cases, I use Mr. and Mrs. Paul Davis. Because that’s their preference. This is about them, not me. And thank goodness that a donor management software makes it easy to set a salutation for each donor so you don’t have to do this manually!

An opening sentence that hooks the reader. If you lead with, On behalf of our Board and staff, well, no one is finishing that sentence. It’s just too dull. Instead try something surprising like, Your really made my day! or You’re a hero! Or You won’t believe what a difference your gift made!  Check out this video for tips on writing the best opening sentence you can.

A warm, conversational tone: Your donation receipt, like all your donor communications, should have a casual, personal tone that makes the reader feel like they are having a conversation with you or reading a letter from a friend. Try reading your letter aloud and see if it sounds like you are chatting with your donor. This tone helps build a connection between you and your donor.

Hero language: When you tell a donor that your nonprofit wouldn’t exist without them, you are speaking the truth. So why be shy about saying it? Say things like, We couldn’t do this without you!, and Because of you, XYZ is possible!

When you make the donor the hero, they feel amazing and proud for giving to your organization. Hero languages reinforces the idea that they made the right choice and increases the possibility that they will give again.

A compelling statistic. Adding a powerful statistic can go a long way in making donors feel like their gift was worthwhile. But when choosing a statistic, make sure the figure makes sense and doesn’t require too much explanation. Make sure the stat truly makes the case that your donor’s gift made a difference. And, make sure the stat makes sense.

If you don’t have the right number to share, it’s better to skip the stat than include one that will make your donor say, “Huh?”

Information required by the IRS (US only). If your nonprofit is US-based, you must include the amount of the gift, the date of the gift, your organization’s name, and your tax ID number. If the gift was toward a campaign or designated for a special purpose, it’s a good idea to include that information as well for the donor’s reference.

Then add the following sentence, assuming 100% of the gift was a donation: “No goods or services were given in exchange for this donation.” If part of the donation included goods or services, such as dinner at an event, an auction item, of a raffle ticket, seek advice from your tax advisor on properly wording the IRS language in your donation receipt.

A word about inkind gifts: Of course you should always thank a donor who gives an inkind gift, such as a donation of bottled water, laundry detergent, pet food, or whatever. But the rules are a bit different around IRS language. State the type of gift, but don’t attach any value to it. That is the donor’s responsibility under IRS guidelines.

For example, “Thank you for your generous gift of 10 cases of bottled water for our community event. No goods or services were given in exchange for this donation. Our tax ID number is 11-1111111. In accordance with IRS guidelines, we do not place a value on inkind gifts. Please consult your receipt for this information.”

Just because stiff, boring tax language is required, this information does not have to take center stage. Start with a sincere note of thanks about how the donor’s gift was used, and then provide the specifics of their gift with the tax information.

Photo or video of how their gift is being used. The right photo or video can really hit the donor squarely in the heart. If the donor’s gift was used to buy laptops, a photo of students on the new laptops will hit the right note.

If the donor’s gift was used for food for a pantry, a video of a volunteer filling bags with tomato soup, saltines, and other staples will tell the story without having to find a pantry guest willing to be filmed. While packing the box, the volunteer can tell a story of a recent exchange with a person who received groceries at the pantry.

It’s always powerful to include a recipient of services in your photo or video, but if your work is too sensitive or you cannot find someone who is comfortable participating, you can get creative and still come up with an effective photo or video.

Another note about the right photo: In an appeal, your success rate will be higher if the person in the photo is not smiling. But in a donation receipt, it is best to choose a happy photo. The goal of the donation receipt is to make the donor feel happy.