Nonprofit Donor Acknowledgment and Gift Substantiation Audit
Donors cannot deduct contributions without proper written acknowledgment from the nonprofit. Inadequate acknowledgment procedures risk donors losing their deductions and the organization's reputation. This quarterly audit ensures all acknowledgment processes meet IRS standards.
- Industry: Nonprofit
- Frequency: Quarterly
- Estimated Time: 2-3 hours
- Role: Development Director / Finance Manager
- Total Items: 24
Written Acknowledgment Requirements
Verify written acknowledgment compliance.
- Written acknowledgment sent for all gifts of $250 or more?
- Acknowledgments sent within 30 days of gift receipt?
- All required elements in acknowledgment: org name, date, amount, goods/services statement?
- 'No goods or services were provided in exchange' statement included for pure gifts?
- Organization's EIN included in acknowledgments?
Quid Pro Quo Disclosures
Verify quid pro quo disclosures.
- Quid pro quo disclosure provided for all payments above $75 where goods/services provided?
- Fair market value of all goods/services provided to donors calculated?
- Quid pro quo disclosure provided at time of solicitation (not just acknowledgment)?
- Event ticket disclosures showing FMV of event benefits?
Non-Cash Gift Documentation
Verify non-cash gift compliance.
- Non-cash gifts acknowledged with description (not valuation) per IRS rules?
- Non-cash gifts over $5,000 confirmed to have qualified appraisal per IRS rules?
- Organization signed Section B of Form 8283 for acknowledged non-cash gifts over $5,000?
- Vehicle donations handled per IRS Form 1098-C requirements if applicable?
Matching Gift Documentation
Verify matching gift documentation.
- Employee matching gift verification requests submitted to companies timely?
- Corporate matching gift payments acknowledged separately from employee gifts?
- Matching gifts credited to appropriate donor record for recognition purposes?
Donor Advised Fund Gifts
Verify DAF gift acknowledgment.
- DAF grants acknowledged to the donor advised fund (not the individual donor)?
- No goods/services provided in exchange for DAF grants (DAF rules prohibit it)?
- Private foundation grants acknowledged per grant letter requirements?
Acknowledgment Record Keeping
Verify acknowledgment records.
- Copies of all acknowledgment letters retained in donor files?
- Acknowledgment date and method recorded in donor CRM?
- Undeliverable acknowledgments noted and address corrected?
- Sample of acknowledgments reviewed for content accuracy this quarter?
- Acknowledgment letter templates verified to include all required IRS elements?
Related Nonprofit Checklists
- Nonprofit Gift Acceptance Policy and Unusual Gift Review
- Nonprofit Donor Database Hygiene and Data Quality Audit
- Nonprofit Major Donor Stewardship Program Audit
- Nonprofit Pledge Tracking and Fulfillment Management
- Nonprofit Capital Campaign Management and Compliance
- Nonprofit Corporate Partnership and Sponsorship Management
- Nonprofit Social Enterprise and Earned Revenue Compliance
- Nonprofit Volunteer Recognition and Retention Program Review
Related Donor Relations Checklists
- Nonprofit Donor Database Hygiene and Data Quality Audit - FREE Download
- Nonprofit Major Donor Stewardship Program Audit - FREE Download
- Nonprofit Pledge Tracking and Fulfillment Management - FREE Download
- Nonprofit Annual Fund Performance Analysis - FREE Download
- Nonprofit Major Gift Cultivation and Solicitation Strategy - FREE Download
- Nonprofit Gift Acceptance Policy and Unusual Gift Review - FREE Download
Why Use This Nonprofit Donor Acknowledgment and Gift Substantiation Audit?
This nonprofit donor acknowledgment and gift substantiation audit helps nonprofit teams maintain compliance and operational excellence. Designed for development director / finance manager professionals, this checklist covers 24 critical inspection points across 6 sections. Recommended frequency: quarterly.
Frequently Asked Questions
What does the Nonprofit Donor Acknowledgment and Gift Substantiation Audit cover?
This checklist covers 24 inspection items across 6 sections: Written Acknowledgment Requirements, Quid Pro Quo Disclosures, Non-Cash Gift Documentation, Matching Gift Documentation, Donor Advised Fund Gifts, Acknowledgment Record Keeping. It is designed for nonprofit operations and compliance.
How often should this checklist be completed?
This checklist should be completed quarterly. Each completion takes approximately 2-3 hours.
Who should use this Nonprofit Donor Acknowledgment and Gift Substantiation Audit?
This checklist is designed for Development Director / Finance Manager professionals in the nonprofit industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.
Can I download this checklist as a PDF?
Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.