LetterAgent
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Yes. In the US, the IRS requires a written acknowledgment for any single donation above the IRS threshold before the donor can claim a deduction, and in Canada a registered charity must issue an official receipt with its registration number. State the amount, the date, and that the donor got nothing in return. This is general information, not tax advice.
| Requirement | United States | Canada |
|---|---|---|
| When it is required | Any single donation above the IRS threshold | Any donation the donor wants to claim; the charity issues an official donation receipt |
| Organization details | Name of the organization | Charity name, address, and CRA registration number |
| Gift details | Amount of cash, or a description of non-cash property (no value needed for the description) | Eligible amount of the gift, date received, donor name and address |
| The key sentence | "No goods or services were provided in exchange for this contribution" | A statement of the eligible amount after any advantage is subtracted |
| Quid pro quo gifts | For payments above the quid-pro-quo dollar threshold where the donor got something back, give a good-faith estimate of the value | The receipt must show the advantage and the eligible amount separately |
The quid pro quo row is the one small nonprofits get wrong most often. At a charity auction, the donor's deductible amount is what they paid minus the fair value of what they took home. If someone pays more than a dinner's fair value, the receipt shows only the gift portion as eligible, not the full amount. Getting this wrong puts the donor's deduction at risk, not just your paperwork.
The donor needs it in hand before they file their return. In practice, most nonprofits send acknowledgments within a few days of receiving the gift, then send a year-end statement in January covering everything from the prior year. Donors lose things, so the January statement is the one that actually gets used at tax time. Keep a copy of every acknowledgment you send; if a donor's return is ever questioned, the charity is the one asked to produce it.
An email acknowledgment is generally acceptable to tax authorities, but a mailed letter still wins in two situations. First, older donors often expect paper and file it with their tax documents, where it will not get buried under inbox clutter. Second, a physical letter doubles as a thank-you: donors who feel thanked give again, and a form email does not create that feeling. Many nonprofits send both: a quick email receipt the same day, and a mailed letter with a personal note for larger gifts.
Yes. LetterAgent prints each letter on 8.5x11 paper, single-sided, and mails it in a standard double-window business envelope with first-class postage or the fastest available non-express service. You describe the letter to your AI assistant, approve the exact quoted price per letter, and it is printed and mailed. The acknowledgment letter itself is the document, so the no-inserts rule is not a problem here. For year-end summaries going to many donors, each recipient is a separate letter job with their own address showing through the envelope window.
Ready to mail it? Send your letter with LetterAgent - describe it to your AI assistant, approve the exact quoted price, and it's printed and mailed.
LetterAgent is a working name. Prices include print, postage, and our service fee. US prices in USD, Canadian prices in CAD (Canadian prices exclude applicable sales tax, added at checkout). Currently in private testing.
Need help? Ask your assistant. It can check a job's status any time. If it ever can't handle something: hello@getletteragent.com