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It is rude to not thank the gift giver after receiving a gift, but it sounds like their children don't know this because they haven't been taught properly. If you stop giving the children gifts, they'll have no idea why you did it, which will defeat the purpose.
You can acknowledge their generosity in much the same way you thank your other donors?with just a few differences. Thank the donor who recommended the grant, not Fidelity Charitable. ... Eliminate all references to the gift being tax-deductible. ... Use a thank-you as an opportunity to drive future engagement.
Tip #1: Although the IRS doesn't require acknowledgment letters to be sent for gifts under $250, it's a good rule of thumb to express thanks for every gift, regardless of its size.
Some experts recommend that your acknowledgment read something like, ?Thank you for recommending the generous grant of $500.00 that we received on <date> through your donor advised fund at Fidelity Charitable.?
Some possible reasons: They misplaced the gift or otherwise don't see it as they are deciding whom to thank. They don't realize who gave them the gift. Perhaps they thanked the wrong person for giving them the gift.