Substance and Style

    End of Year Stewardship

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    It’s always a nice idea to show appreciation for your donors, sponsors, and volunteers at this time of year. Aside from being nice, it helps your supporters get organized for tax time. Whether you send a holiday card, a letter, or even an email, make sure to personalize your message and include the following:

    1. A sincere expression of gratitude. It can be hard to make time to single out your supporters for thanks, but you really owe everything to them. Let them know what their support has meant to your organization over the last year. Tell them they are appreciated.
    2. A description and/or pictures of what their donation allowed you to accomplish. This helps them to feel that their contribution is meaningful, which it is. It builds your relationship with supporters, and sticks in their minds when they are out in the world, talking about people who are doing good work.
    3. A specific list of their donation amounts and volunteer hours. For event sponsors, include the amount of the sponsorship that is tax-deductible (find this number by taking their total contribution and subtracting the value of goods. For example, if event tickets were included as a benefit of sponsorship, you would subtract the cost of meals). For volunteers, provide the number of hours worked along with your state’s established volunteer rate for in-kind donations. Find the value of your state’s volunteer time here.
    4. A statement of goods donated (furniture, office supplies, etc.) along with a reminder that donors must determine the value of such donations themselves and declare that value on form 8283 if itemizing deductions for their federal taxes. 
    5. A statement of your nonprofit status along with your tax id number and any legal disclosures necessary in your state. For example, in Maryland, your disclosure must state that a financial statement is available on request, and provide information on how to obtain it,. It must also state that documents submitted to the State of Maryland under the Maryland Solicitations Act are available for the cost of postage and copies, and provide information on how to obtain them. Find your state’s requirements here. Your local association for nonprofits may be able to provide you with more specific guidance.
    6. A closing thank you. End the way you started, with a heartfelt expression of gratitude. It’s also a nice touch to wish your supporters well for the new year.