What must the memo include?

A memo should state donor identity, date, amount or description of noncash property, whether goods or services were provided, and the organization’s EIN and contact. This information helps donors substantiate deductions under IRS guidance.

Is this memo a tax receipt?

Yes. For cash gifts of $250 or more, the IRS requires a contemporaneous written acknowledgment detailing the donation and any quid pro quo to support a charitable deduction.

Can the memo be e-signed?

Electronic signatures are legally acceptable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most jurisdictions; ensure intent, consent, attribution, and retention are demonstrable.

Who should sign the memo?

An authorized representative of the nonprofit—typically a development director, CFO, or authorized officer—should sign and include title to verify organizational authority.

How long must we keep the memo?

Retain memos per IRS recordkeeping rules (minimum three years) and longer where industry rules apply, for example six years when HIPAA applies (45 CFR §164.530(j)).

How to handle noncash valuations?

Provide a clear description and estimated fair-market value; for substantial noncash gifts, document any appraisal or donor-provided valuation to support tax reporting.

Electronic Signature
Templates
Miscellaneous
Gift Acknowledgment Memo

Gift Acknowledgment Memo

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

GIFT ACKNOWLEDGMENT MEMO

Recitals

WHEREAS, Donor Name: (the "Donor") desires to make a gift to Organization Name: (the "Organization") in accordance with the terms set forth below; and

WHEREAS, the Organization has agreed to accept and acknowledge the gift and to apply the gift in accordance with the Donor's stated purpose and any applicable restrictions described herein.

WHEREAS, this Memo documents the parties' mutual understanding regarding the nature, value, restrictions and treatment of the gift for record and stewardship purposes.

Gift Identification

Date Gift Received Type of Gift Detailed Description of Gift If non-cash, appraised fair market value (if available)

Scope of Work / Purpose of Gift

The Donor directs that the gift be used for the following purpose and the Organization accepts stewardship for the same. Specific intended uses, activities or programs to be supported are described below.

Scope / Purpose Description

Payment Terms (if applicable)

For gifts conveyed by installment, the parties agree to the schedule and remedies set forth below.

Total Pledge Amount Payment Schedule (dates and amounts) Late Payment Fee

Term and Termination

This Memo becomes effective as of the Start Date below and shall remain in effect until the End Date listed or until the purpose of the gift has been satisfied consistent with applicable law and the Organization's policies.

Start Date End Date (or event upon which obligation ends) Notice Period for Termination by Either Party

Acknowledgment of Goods or Services Received

The Organization affirms that it has received no goods or services in exchange for the gift, except as described below. The Donor acknowledges responsibility for any valuation of in-kind items for tax purposes.

Were any goods or services provided to Donor in consideration for this gift?

No Yes — if yes, describe below

Description of any goods or services provided & value

Confidentiality

The Organization shall maintain confidential the Donor's personal information and any restricted use provisions for the gift, except to the extent disclosure is required by law or is necessary to fulfill the purpose of the gift. Confidential information does not include information that is or becomes publicly available through no fault of the Organization.

Governing Law

This Memo shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of law principles.

Representations and Warranties

The Donor represents that the Donor has the authority to give the gift and that the gift is not subject to liens or encumbrances. The Organization represents that it is a qualified organization authorized to receive gifts and will apply the gift in accordance with this Memo and applicable law.

Entire Agreement

This Memo constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous written or oral agreements, representations and understandings between the parties relating to the gift.

Additional Donor and Organization Information

Donor Contact Address Donor Tax Identification Number (if applicable) Organization Contact Person Organization Address

Donor Name:

By:

Date:

Organization Representative:

By:

Date:

What a Gift Acknowledgment Memo Is and When It’s Used

A Gift Acknowledgment Memo documents receipt of a charitable contribution and confirms facts donors need to claim a tax deduction. It records donor identity, date and amount or description of the gift, any goods or services provided in return, and the organization’s identifying information. Nonprofit finance teams use the memo for internal records, donor stewardship, and to meet IRS substantiation rules. Accurate memos reduce donor disputes and support audit readiness by preserving a contemporaneous statement of the transaction and any quid pro quo value.

Why a Clear Acknowledgment Memo Matters

A precise memo substantiates tax deductions, protects donor and nonprofit interests, and supports audit defensibility under IRS rules.

Who Prepares and Who Receives These Memos

Typical creators and recipients of Gift Acknowledgment Memos vary by role and responsibility within the organization.

Development Officers and Donor Relations: prepare donor-facing receipts and track stewardship details for major gifts and pledges.
Finance and Accounting Teams: retain memos as part of financial records and reconcile contributions for annual reporting.
Donors and Their Tax Advisors: receive the memo to substantiate deductions and to determine any required reporting or valuation.

Use consistent templates and centralized storage so all stakeholders can find validated receipts when needed.

Essential Elements to Include in a Professional Memo

A professional memo combines standardized data fields with clear language to meet donor needs and regulatory expectations.

Donor Identity

Full legal name and mailing address exactly as provided by the donor; supports tax substantiation and payor identification.

Organization Info

Nonprofit name, EIN, and mailing address so recipients and IRS reviewers can identify the charitable payee without ambiguity.

Gift Description

Specify cash amount or a plain-language description of noncash property including quantity, condition, and any restrictions.

Date of Gift

Record the date the organization received the gift; this date determines the tax year for deduction purposes.

Quid Pro Quo Statement

If the donor received goods or services, state a good-faith estimate of fair-market value or state that none were provided.

Signature and Contact

Include an authorized signature, printed name, title, and a contact phone or email for follow-up and verification.

Required Data Fields at a Glance

Donor Name: Full legal name

Tax ID/EIN: Donor TIN or organization EIN

Gift Date: MM/DD/YYYY

Gift Amount: Dollar amount or value

Gift Description: Cash or noncash details

Acknowledgment Line: Quid pro quo or no-value statement

Quick Step-by-Step: Creating the Memo

Follow these core steps to prepare and deliver a compliant Gift Acknowledgment Memo.

01

Assemble Details: Collect donor identity, EIN, date, and gift specifics.
02

Draft Statement: Write a plain-language receipt including quid pro quo language.
03

Authorize: Have an authorized official sign and date the memo.
04

Deliver and File: Send to donor and save in the nonprofit’s records system.

Configuring an Online Acknowledgment Workflow

Set fields, authentication, and delivery rules before sending memos electronically.

Field	Configuration
Template Name	Use consistent naming for version control
Required Fields	Donor name, date, amount, EIN, quid pro quo
Conditional Logic	Show valuation fields when noncash selected
Signature Authentication	Email link, SMS code, or stronger as required

Delivery Options and Platform Considerations

Choose delivery and file formats that preserve the memo and support verification.

File Formats: Use PDF or PDF/A for long-term preservation
Integrations: Connect to CRM or donor database for automated filing
Authentication: Enable email or SMS authentication for signer attribution

Ensure chosen tools produce an audit trail and exportable signed copies for donor and finance records.

Where to Send and How to Route the Memo

Routing the memo ensures donors and internal teams receive and retain the record.

To the Donor: Email signed copy and retain proof of delivery
Accounting Files: Store a copy in the general ledger backup
Development Records: Attach to donor record in CRM
Audit Archive: Keep original signed file in secure long-term storage

Timing Guidance and Donor Deadlines

Issue acknowledgments promptly so donors can substantiate deductions during tax season.

Prompt Delivery:

Send the memo immediately after gift receipt

Tax Filing Needs:

Donors generally require receipt to claim deduction by April 15

Large Gifts:

Provide contemporaneous written acknowledgment for gifts $250 and above

Noncash Gifts:

Document description and value as soon as practicable

Record Access:

Provide copies to donors on request without undue delay

Consequences of Inaccurate or Missing Memos

Deduction Denial: Donor may lose tax deduction

IRS Inquiry: Organization may face additional review

Valuation Risk: Overstated noncash value can trigger penalties

Reputational Harm: Donor trust can be damaged

Recordkeeping Failure: Noncompliance with audit standards

Legal Exposure: Potential disputes or litigation

Common Preparation Mistakes to Avoid

Failing to state whether goods or services were provided, causing donor deduction disputes during audit.
Using informal donor names or misspelled EINs, which prevents matching to tax returns or triggers backup withholding issues.
Delaying delivery until after tax season, which can leave donors unable to substantiate deductions on timely returns.
Omitting an authorized signature or contact information, making verification difficult for auditors or donor advisors.

eSignature Vendor Comparison for Sending Gift Acknowledgment Memos

Compare commonly used eSignature providers on price and key capabilities relevant to acknowledgment workflows.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA)	Yes (BAA available)	Yes	No	No

Frequently Asked Questions About Gift Acknowledgment Memos

Answers to common questions about content, tax use, e-signatures, storage, and valuation practices.

Need help? Contact support

What must the memo include?
A memo should state donor identity, date, amount or description of noncash property, whether goods or services were provided, and the organization’s EIN and contact. This information helps donors substantiate deductions under IRS guidance.
Is this memo a tax receipt?
Yes. For cash gifts of $250 or more, the IRS requires a contemporaneous written acknowledgment detailing the donation and any quid pro quo to support a charitable deduction.
Can the memo be e-signed?
Electronic signatures are legally acceptable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most jurisdictions; ensure intent, consent, attribution, and retention are demonstrable.
Who should sign the memo?
An authorized representative of the nonprofit—typically a development director, CFO, or authorized officer—should sign and include title to verify organizational authority.
How long must we keep the memo?
Retain memos per IRS recordkeeping rules (minimum three years) and longer where industry rules apply, for example six years when HIPAA applies (45 CFR §164.530(j)).
How to handle noncash valuations?
Provide a clear description and estimated fair-market value; for substantial noncash gifts, document any appraisal or donor-provided valuation to support tax reporting.

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