Once you have a donation from a contributor in hand, don't neglect the follow-up steps necessary to keep that donor and cultivate more donations.
There are two things you must do for each donor:
- write a thank you note telling them personally what their donation means to your organization
- provide a letter that officially acknowledges the donation and that it is tax deductible. The donor can use this letter as proof that they made the donation and that it is tax deductible on their income tax return.
The simple thank you letter should be sent immediately...we're talking about 48 hours, ideally, after receiving the donation.
See our How to Write Donor Thank You Letters That Seal the Deal for tips on writing that letter and our sample thank you letter.
The other letter, sometimes called a tax-letter or a donor disclosure letter, can be sent with or be a part of your thank you letter. However, it can also be sent at the end of the year or the beginning of the next year.
Some donors may well prefer to get the tax letter right when they are starting to gather their tax documents. If you choose this option, send the letter no later than the 15th of January. This letter, far from being a perfunctory legal requirement, can be part of your direct mail fundraising. It is a way to remind the donor once again of your organization, and to quietly suggest another donation by enclosing a reply envelope. Some donors may well send it back with another check.
See What You Need to Know About Donor Disclosures for specifics about the tax letter. Also, our Your First Steps Toward Direct-Mail Fundraising describes how the tax letter can be a part of your direct mail efforts.
