QCD Acknowledgment Letter
QCD Acknowledgment Letter
Once your organization is notified that a donor has made a QCD, an acknowledgment letter should be sent.
This letter confirms receipt of the gift and provides the donor with the documentation needed for tax reporting.
Donors must report QCDs on their Form 1040 and keep a receipt from the nonprofit that includes the required information. Without proper documentation, the QCD may not count toward the donor’s annual required minimum distribution.
The acknowledgment should also state that no goods or services were provided in exchange for the contribution. This helps the donor document the gift properly and supports the organization’s IRS compliance.