Charity Letter is a letter given to an individual, company or an organization for any donations received or given in the form of money or clothes or any form of sponsorships. Say, for example, if no tangible items are given to business but all expenses incurred on a child (her/his education, clothes, food, etc.) are all taken care of by a sponsor is also a form of charity.
A Charity Letter is not only an acknowledgment of having received or given something, but it also helps in tax savings as most donations are exempted from tax. So next time you give any money towards charity, take the receipt, present it while filing your income tax returns and you will see that not only have you done good for someone but you have got its benefits too. Below mentioned are the tips and sample to help you write a letter.
Tips For Writing A Charity Or Donation Letter
- The letter should specify the form in which the charity has been given.
- It should be addressed to the individual or organization from whom the charity has been received.
- If the individual or organization has specified the use that this charity should be put to, then that too should reflect in the letter. For example, the individual or organization desires to get a lunch hall in a school for the orphans made from the amount given then the Charity Letter should say that.
- If an organization is issuing the Charity Letter then it should be on the company’s letterhead.
- The Income Tax Act against which the charity is exempted should also from a part of the letter (if it already is not a part of the printed part of the letterhead).
- A Charity Letter should also indicate that the contribution is purely voluntary and has not been given under any pressure.
- Specifying that no purchase has been made against the charity is also an integral part of the letter in the absence of which it can be considered as a sale by the charitable institution or investment by the individual or organization contributing.
Template
Use our free Charity or Donation Letter to help you get started. If you need any additional help or more examples, check out some of the sample letters below.
From,
__________
__________
Date_______(Date in which letter is written)
To,
___________
___________
Subject: Acknowledgement of receipt of voluntary contribution
Dear ______________
We are an NGO working in favour of children empowerment, especially orphan children. We are very happy and grateful for your contribution towards the NGO to help achieve goals. We acknowledge the receipt of Rs. _______ via DD no ______ dated _________ drawn on ______ in the favour of __________.
We make sure that your donation will be completely utilized for the benefit of orphan children and we will send you an email where your funds have been used with details. Thank you once again for your help.
Also, doing good is always appreciated and that is why all contributions made to our NGO are exempt from taxes under section ______.
We will keep you updated on the developments.
Thanking you,
Yours Sincerely,
(Name and designation of the signing authority)
Sample Letter
From,
Mathews Philip,
Team Member,
NP Organisation,
Bangalore.
Date
To,
Abigail Mathew,
Sharon Shelter,
Aleppy,
Kerala.
Subject: Acknowledgement of receipt of a voluntary contribution
Dear Mr. Abigail,
We are a non-profit making organization working towards the empowerment of orphan children. In your endeavor to support the organization successfully achieving its goals, we thank you and acknowledge receipt of Rs. 1,00,000 vide Cheque/Draft no. 009875 dated 03/04/2016 drawn on in favor of the construction of lunch hall.
We assure you that as per your desires, the contribution made by you will be used for the construction of a lunch hall at our orphanage so that our children can eat in a covered area, which we are very sure they will love.
We confirm that all contributions made to our organization are exempt from Income Tax under section IPC 201.
We once again thank you for your valued contribution, and we will keep you posted with the lunch hall construction developments as well.
Thanking you,
Yours Sincerely,
Mathews Philip.
Email Format
The following is an Email Format that must be followed while writing a Charity or Donation Letter.
To: name@email.com
From: name@email.com
SUBJECT: Acknowledgement of receipt of voluntary contribution
Dear Mr./ Ms/ Mrs. _____________(Name of recipient)
We are an NGO working in favour of children empowerment, especially orphan children. We are very happy and grateful for your contribution towards the NGO to help achieve goals. We acknowledge the receipt of Rs. _______ via DD no ______ dated _________ drawn on ______ in the favour of __________.
We make sure that your donation will be completely utilized for the benefit of orphan children and we will send you an email where your funds have been used with details. Thank you once again for your help.
Also, doing good is always appreciated and that is why all contributions made to our NGO are exempt from taxes under section ______.
We will keep you updated on the developments.
Thanking You,
Best Regards,
(Name of Sender)
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