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Beyond Tax Summaries: Strengthening Donor Relationships Through Giving Statements
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Updated - 01/08/2025
Tax season doesn’t have to be stressful for nonprofits. Delivering year-end donation tax summaries to donors before January 31st is an important step. But it’s more than just another end-of-year task to check off your to-do list—it’s an opportunity to recognize their generosity and show them the real impact they’ve had on your mission.
Understanding why nonprofit tax summaries matter
Sending Tax summaries can do more than help donors claim deductions—they’re tools for building relationships. They serve an important role in helping donors document their contributions, but they also provide a way to showcase how donations made a difference. And that’s just the beginning.
This is where Bloomerang Giving Statements take it further. While Tax Summaries focus on compliance, Giving Statements focus on gratitude and sharing the impact of donors’ contributions, transforming routine paperwork into something personal and impactful.
Staying compliant with IRS regulations
Staying on the right side of IRS guidelines is essential for maintaining the trust your donors place in you. While the IRS requires nonprofits to acknowledge donations of $250, it’s a good practice to recognize gifts of all sizes. This demonstrates your commitment to transparency and shows donors that you value their support, no matter the amount.
Building trust through transparency
Tax Summaries are more than transactional receipts; they’re a way to show accountability with your donors. Transparency in managing donations builds donor confidence and strengthens their trust in your mission. And when donors trust you, they’re more likely to continue to support your mission.
Enhancing donor relationships
Giving Statements do more than summarize donations—they recognize the full scope of donor support and highlight their impact, from financial gifts to volunteer hours, in-kind donations, and soft credits.
This holistic view shows donors the full scope of their generosity and reinforces their connection to your work.
When donors see how their contributions make a difference —not just financially—they feel valued and inspired to continue their support.
Streamlining the process with Bloomerang
Creating and distributing Giving Statements doesn’t have to be a time drain. Bloomerang helps automate the process, saving hours of manual work. In just minutes, you can compile and send professional, personalized documents—freeing your team to focus on advancing your mission.
Personalizing Giving Statements
Giving Statements help you connect with donors by capturing all the ways they’ve supported your mission. They go beyond generic summaries to show donors their contributions are valued and reinforce their role as essential partners in your work.
What makes Giving Statements stand out
Giving Statements are designed to show donors the full scope of their contributions and their impact, creating a stronger connection to your mission.
Here’s how Giving Statements go beyond the basics:
- Capture the full scope of giving: Include financial gifts, in-kind donations, volunteer hours, and soft credits in one document to give donors a clear view of their total impact.
- Highlight volunteer time: Show donors how their time and effort contributed to your mission, reinforcing the value of their non-financial support.
- Recognize soft credits: Acknowledge gifts made through matching programs, family foundations, or other channels to highlight their role in inspiring generosity.
- Summarize household giving: Combine contributions from all household members into a single summary so donors can see their collective generosity in one place.
- Ensure clarity and compliance: Separate in-kind gifts from monetary donations to align with IRS guidance and avoid confusion.
- Customize the format: Add your organization’s logo and adjust settings, like excluding volunteer hours or soft credits, to ensure the data’s accurate.
- Deliver a professional look: Use a clean, modern layout with clear sections and easy-to-read formatting that keeps the focus on donor contributions.
Securing donor trust
Trust grows when donors see how their support makes a difference. Giving Statements go beyond documentation—they celebrate the full scope of donor generosity by showing that they’re essential partners in your organization’s mission.
This sense of recognition strengthens their connection to your organization and inspires them to keep showing up for your cause.
The last word
Giving Statements are more than a tax-season necessity—they’re an opportunity to celebrate generosity and build lasting connections. Bloomerang makes it easy to turn routine summaries into meaningful touchpoints that strengthen donor relationships. Every Giving Statement is a chance to highlight what’s possible when donors and nonprofits work together.
Ready to see how Bloomerang can simplify your tax season? Contact us for a demo to explore how we can help you build stronger donor relationships.
How do you use tax summaries to strengthen your donor connections? Share your ideas and strategies in the comments below!
Learn how Bloomerang Tax Summaries can work for you!
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