Question: Should you send an acknowledgment to donors for pledge payments toward a larger gift?
Question: We’ve been going back and forth on this issue. Do you send an acknowledgement for pledge payments? For example, if someone makes a multi-year pledge, do you send an acknowledgement letter every time a payment is received or just for the initial pledge? What about for donors set up for monthly giving?
Answer:
There are IRS requirements for sending a receipt. Even if the gift falls under the IRS minimum amount for a receipt ($250 at this time), the best practice is to always send a receipt. It communicates to donors that their gifts have been received and applied properly. Often, monthly donors ask that they receive only one tax receipt at the end of the calendar year vs. twelve separate ones throughout the year. We always follow the practice of sending a summary letter in January to all donors who made multiple gifts during the calendar year. It helps them with their tax preparation and is another stewardship opportunity.
On the other hand, an acknowledgement letter is an important part of stewarding your donors. It’s an opportunity to thank donors again and let them know how their gifts are or will be used.You should develop a grid for these pledge payment acknowledgement letters that involves different people in your organization as the pledge payment amount increases. The more people in your organization who build relationships with your donors, the more the donors will feel their gifts make a difference. If the pledge payment is for a specific use, have someone from the area that will benefit from the pledge send an acknowledgement letter.
Letters coming for all areas of your organization also help reinforce a culture of philanthropy and help employees understand everyone has a key role fundraising to support your mission.
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