Move over tweens, nonprofits are taking over texting. With the help of text campaigns, charities are reaching new donors and raising more than ever. But innovative leaders of nonprofits need to remember the basics. No matter how a donation is received, donor acknowledgments should be provided.
You may have first heard about the text donation phenomena two years ago when the Red Cross raised $43 million for Haiti relief, sent one $10 text donation at a time. Recently, the Salvation Army reported a new annual fundraising record of $147.6 million utilizing text donations. The newest idea is in-person text campaigning at live events, where attendees are asked to pledge donations via text.
Despite these innovations in fundraising, nonprofits must remember the fundamentals, including providing a written acknowledgment for each donation. Donors require written acknowledgments for all cash contributions of $250 or more. But best practices would require that all donations be acknowledged in writing even though it is not required for tax purposes. Aside from best practices, written acknowledgments are a good way to show appreciation to donors, who will then be more likely to continue supporting the organization in the future.
If you have questions about acknowledgments, such as what information should be included or when you need to send them, look at IRS Publications 1771 and 526 or call us.