What do you need to include in your donation acknowledgment letter? A gift acknowledgment letter weaves together your nonprofit's appreciation, engagement, and compliance efforts following a donor's generosity.A donor acknowledgement letter should include a few specific items to assist the donor and help your organization comply with IRS regulations. Effective donor acknowledgment letter can help you retain donors and increase brand awareness. Read how it can increase donations as well. "Thank you for your contribution of (insert amount of cash donation) on Date. No goods or services were provided in exchange for this contribution. A perfect yearend donation letter can boost your fundraising campaign. The IRS advises not to include values since it's up to the donor to determine the value of inkind contributions. After reviewing and approving your application, the IRS will return a Determination Letter officially recognizing your exemption.