How to Write Letter

501 C 3 Donation Letter

501 c 3 is a tax exemption, under the American laws, for donations to non profit organizations, church, religious donations, etc. Donations given by the donor, without receiving anything in return; either in cash or kind, makes the donor eligible for this tax exemption. To avail of this tax exemption, you get a 501 c 3 donation letter or receipt from the receiving party.

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In case the donor has been gifted something in return of the donation, as a token of appreciation or love, still the donor is eligible for this tax exemption, but the exemptions vary in this case.

In case a donor has contributed to a fundraising event, by purchasing a ticket for an event or by purchasing some goods put on sale for fundraising, even then the donor can avail of this tax exemption.

However, in all three cases the donor gets a different 501 c 3 donation letter. The donor can avail of the tax benefit as per the amount and exemption, on presenting this letter

The points to be included in this 501c 3 donation letter are:

  1. Name of the donor
  2. Amount donated or contributed in fundraising through purchase
  3. Date of donation
  4. Name of the receiving organization

Below are three different 501 c 3 letters in different scenarios. These sample 501 c 3 letters will help you understand better.

  1. Model of acceptance letter of a capital donation under 501(c)(3) by a nonprofit organization (when the donor has not received anything in return of the donation he/she gave)

    Brownie Brown
    Hope Charitable Foundation
    New York- 55012

    To,
    Mr. Danny Gum
    Home City
    New York- 55012

    Dear Mr. Danny Gum,

    This to thank you for the donation of $500, donated by you to Hope Charitable foundation, dated 9th February, 2011.

    I hereby acknowledge the acceptance of this amount, and ensure that you have not received anything in cash or kind against this donation.

    I thank you for your generous contribution.

    Regards,
    Brownie Brown

  2. Model of acceptance letter of a capital donation under 501(c)(3) by a nonprofit organization (when the donor has received a gift in return of the donation he/she gave)

    Brownie Brown
    Hope Charitable Foundation
    New York- 55012

    To,
    Mr. Danny Gum
    Home City
    New York- 55012

    Dear Mr. Danny Gum,

    I am writing this letter to thank you for your generous contribution of $500 to our foundation. We appreciate your action, and as a token of love and appreciation, we have mailed you a parker pen set. The estimated value of this gift is $20.

    You can avail a tax exemption for the amount of the contribution less the value of the gift which is $480.

    Regards,
    Brownie Brown

  3. Model of acceptance letter of a capital donation under 501(c)(3) by a nonprofit organization (when the donor has contribute by purchasing a ticket or goods for fundraising)

    Brownie Brown
    Hope Charitable Foundation
    New York- 55012

    To,
    Mr. Danny Gum
    Home City
    New York- 55012

    Dear Mr. Danny Gum,

    Thank you for your co -operation. This is to inform you that you can avail of a tax exemption for the $100 dollars you paid to purchase the ticket of the vent. The market value of the ticket is $30, so your donated amount is $70.

    You can avail of a tax deduction for this $70

    Regards,
    Brownie Brown

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