In the US, donors who contribute to eligible 501(c)(3) organizations may deduct their donations from their federal taxable income — making tax receipts an essential part of your fundraising process.
Whether you collect donations online or in person, there's one document every donor needs: a Tax Receipt.
In this article:
- What is a Tax Receipt?
- Which nonprofits can issue a Tax Receipt?
- What format must a Tax Receipt follow?
- What information must a Tax Receipt include?
Good news — Springly lets you automatically generate and send Tax Receipts to your donors. Learn more.
What is a Tax Receipt?
A Tax Receipt is a document issued by a nonprofit that allows donors to claim a tax deduction for contributions they have made to the organization.
Donors who contribute to a qualifying 501(c)(3) nonprofit may deduct the full amount of their donation from their federal taxable income, subject to IRS limitations based on their adjusted gross income. Organizations that provide food, shelter, or care to those in need may qualify for additional giving incentives.
To claim this deduction, donors must be able to provide the IRS with a Tax Receipt issued by the nonprofit.
Which nonprofits can issue a Tax Receipt?
To be eligible, your organization must meet several key criteria. Your nonprofit must:
- operate in the United States;
- hold 501(c)(3) federal tax-exempt status recognized by the IRS;
- be a nonprofit organization;
- serve a public benefit purpose and not operate primarily for the benefit of a private or restricted group (e.g., an alumni association open only to graduates of a specific school).
If your organization is eligible, it can issue Tax Receipts for individual donations, allowing donors to claim a federal tax deduction. For more details, visit the IRS website.
To confirm your organization's eligibility to issue Tax Receipts, we recommend consulting the IRS or a qualified tax advisor.
What format must a Tax Receipt follow?
Tax Receipts must meet certain format and content requirements.
While the IRS does not mandate a specific physical size for Tax Receipts, they must be clear, legible, and include all required information.
With Springly, Tax Receipts are automatically generated in the correct format. If you use Springly's Donation Campaigns, there's nothing extra you need to do.
What information must a Tax Receipt include?
Tax Receipts must include all information required by the IRS for substantiating charitable contributions.
Tax Receipts must include the following key information:
- Unique sequential number: like an invoice, each receipt has a unique number with a clear, traceable sequence;
- Recipient organization: the full legal name of your nonprofit, its address, and a description of its mission;
- Tax-exempt status: a statement confirming that your organization is a tax-exempt nonprofit under Section 501(c)(3) of the Internal Revenue Code, including your EIN (Employer Identification Number);
- Donor identification;
- Amount and date of the contribution;
- Payment method;
- Signature of an authorized representative: a legible signature from the president or treasurer of your nonprofit.
The Tax Receipt generated by Springly includes all of this information.
A gap in receipt numbering is acceptable if receipts were issued using two different tools. If you need to issue Tax Receipts outside of the platform, this won't cause any issues.
For more information, check out the article on your nonprofit's legal and administrative information.
Here is an example of a Tax Receipt automatically generated by Springly.
The receipt layout and content cannot be modified — other than the organization information you are asked to provide.
Springly automatically generates and sends Tax Receipts on your behalf — saving you time and simplifying the management of your nonprofit. Learn more.
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