End-of-year Giving Statements: 10 Best Practices

End-of-year giving statements are official summary documents provided by churches or nonprofit organizations to donors, listing all tax-deductible contributions made during the calendar year. These statements serve both a legal and stewardship function—helping donors claim charitable tax deductions when filing taxes and reinforcing transparency and trust between the donor and the organization. They typically include the donor's name, address, a breakdown of donation dates and amounts, and a statement confirming no goods or services were received in exchange for the gifts. By issuing these annually, churches not only meet IRS compliance standards but also offer a valuable opportunity to thank donors, recap ministry impact, and encourage continued support.

The 10 best practices for end-of-year giving statements are listed below.

• Ensure Statements Are Accurate and Professional: Review all donation data carefully to ensure the totals, donor names, and dates are correct before issuing the statement. Present the statement using clean formatting and official branding to reflect credibility and care.
• Express Clear and Sincere Gratitude: Include a heartfelt thank-you message in the statement that acknowledges the donor's generosity. Avoid generic phrases and instead reflect the unique impact their giving made over the year.
• Test Statements Before Sending Out: Run sample statements internally or with a small group to check for formatting issues, typos, or incorrect data. Testing ensures a smooth delivery experience and prevents errors that could affect trust.
• Use Language That Focuses on Donors: Frame the message in a donor-centric way by highlighting phrases like "because of your gift" or "thanks to your support." This builds stronger emotional connection and reinforces their role in the ministry's mission.
• Share a Meaningful Story: Include a brief story or testimonial showing how donations helped change lives or support the church's goals. Real-life examples make the statement more engaging and memorable.
• Add a Clear and Simple Call to Action: At the end of the statement, invite donors to take a next step—such as continuing their support, visiting a ministry event, or setting up recurring giving. Keep the action specific and easy to follow.
• Create Urgency to Encourage Action: Use language that emphasizes timely needs or upcoming goals, such as "Help us start the new year strong." Urgency helps prompt quicker responses, especially for year-end campaigns.
• Personalize Appeals by Donor Segments: Tailor messages for different groups—such as first-time givers, major donors, or recurring supporters—to make each feel personally valued. This shows attentiveness and increases engagement.
• Customize the Donation Form with Branding: If including a giving opportunity, ensure the form matches your church's visual identity with logos, colors, and mission language. A branded experience builds trust and confidence in giving.
• Launch a Year-End Giving Campaign: Pair your statement with a targeted campaign that highlights final-year goals, matching opportunities, or ministry needs. Coordinating the message with a broader appeal can boost final contributions.

1. Ensure Statements Are Accurate and Professional

Ensuring statements are accurate and professional means that year-end giving records must correctly reflect each donor's contributions and be presented in a clear, organized, and formal manner. The purpose is to establish trust and transparency between the parish and its donors, ensuring they have the correct documentation for tax reporting. Accurate statements reduce the risk of errors that could lead to donor confusion or IRS issues, while professionalism enhances the parish's credibility. This works by using a robust donation tracking system like ParishSOFT to automate recordkeeping and format giving statements consistently. For example, a parish sends out year-end statements showing each donor's name, contribution dates, amounts, and tax-deductible status with a polished letterhead and thank-you message.

2. Express Clear and Sincere Gratitude

Expressing clear and sincere gratitude means intentionally thanking donors in a genuine, heartfelt way that acknowledges their specific contributions. The purpose is to affirm the donor's impact and foster a deeper emotional connection with the ministry. It is important because gratitude significantly increases donor retention and affirms that their gifts are valued. This works by including personalized thank-you notes or language in year-end statements that reflect appreciation beyond a transactional receipt. For example, a statement might include, "Your generosity helped fund youth ministry outreach in 2024—thank you for being a vital part of this mission."

3. Test Statements Before Sending Out

Testing statements before sending out means reviewing and previewing donor documents internally to ensure accuracy, formatting, and delivery compatibility. The purpose is to prevent costly mistakes like incorrect amounts, mismatched names, or technical issues that can erode donor trust. It's important because once distributed, errors are difficult to correct and may damage the parish's credibility. This process involves generating sample statements for internal review and having multiple staff members proofread before batch emailing or mailing. For example, a church may print test statements for five donors and verify each line item before launching a full mailing.

4. Use Language That Focuses on Donors

Using donor-focused language means framing messages around the donor's actions and impact rather than the organization's needs. The purpose is to show that the donor is the hero of the story, reinforcing their role in the ministry's success. This is important because donors are more motivated when they feel seen, valued, and central to the mission. This works by replacing "We accomplished..." with "Your gift made it possible to..." statements. For instance, instead of saying "The church expanded its outreach," say "Thanks to your gift, we reached 100 families in need."

5. Share a Meaningful Story

Sharing a meaningful story involves including a brief, real-life narrative that illustrates the donor's impact. The purpose is to emotionally connect giving with tangible outcomes that resonate. This is important because storytelling inspires continued generosity and helps donors see their contributions as transformative. It works by highlighting one person, family, or ministry that benefited from donations, often with a name and quote (with permission). For example, a statement might include: "Maria, a single mother, found hope through our food program—made possible by your giving."

6. Add a Clear and Simple Call to Action

Adding a clear and simple call to action (CTA) means guiding donors on what they can do next—whether it's to continue giving, attend an event, or update their pledge. The purpose is to maintain engagement and direct momentum after reviewing their impact. It's important because even a grateful donor may not act without a prompt. This works by placing a concise CTA at the end of the statement, such as "Visit parishgiving.org to set up your 2025 giving" or "Join us for our Donor Appreciation Night in February." For example: "Want to continue changing lives in 2025? Start a recurring gift today."

7. Create Urgency to Encourage Action

Creating urgency means using time-sensitive language that motivates donors to act quickly, often tied to deadlines or limited opportunities. The purpose is to spur immediate engagement and maximize year-end giving momentum. This is important because procrastination is a major barrier to action—even among generous supporters. It works by including phrases like "Give before December 31 to make your gift count for this tax year" or "Help us reach our year-end goal of $50,000." For example, a parish might include: "Just 5 days left to double your impact with our year-end matching gift!"

8. Personalize Appeals by Donor Segments

Personalizing appeals by donor segments means tailoring the message based on donor type, such as new givers, long-time supporters, or major donors. The purpose is to make each donor feel recognized and uniquely valued. This is important because personalized communication increases response rates and builds loyalty. It works by using donor management software to generate different versions of statements that address specific giving behaviors. For example, new donors may receive "Thank you for making your first gift this year," while recurring donors might see "Your monthly support made a lasting difference all year."

9. Customize the Donation Form with Branding

Customizing the donation form with branding means matching the church's logo, colors, and tone on the online giving page or physical form. The purpose is to build trust and reinforce brand consistency. It's important because a familiar, professional interface increases donor confidence and reduces hesitation during giving. This works by using donation tools like ParishSOFT Giving to create branded, mobile-friendly forms. For example, a donation form might feature the church's logo, header that says "St. Mark's 2025 Giving," and a message like "Join our mission to serve the community."

10. Launch a Year-End Giving Campaign

Launching a year-end giving campaign involves organizing a focused fundraising effort in the final weeks of the year, often with a theme and specific goal. The purpose is to capitalize on donors' heightened generosity and desire for tax-deductible gifts before December 31. It's important because many churches receive a large portion of their annual giving in the final quarter. This works by setting a clear fundraising target, promoting it across communication channels, and tracking progress publicly. For example, a church may launch the "Light the Way" campaign with a $25,000 goal to fund outreach programs in the new year.

What is Year-End Giving?

Year-end giving refers to the charitable donations made by individuals during the final months of the calendar year, particularly in November and December, often driven by generosity during the holiday season and the desire for tax-deductible contributions before December 31. This period is crucial for churches and nonprofits, as it accounts for a significant portion of their annual donations—many organizations receive up to 30% or more of their yearly giving during this time. Year-end giving campaigns typically include appeals through emails, social media, and direct mail, encouraging donors to make their final gifts of the year to support ongoing ministries and upcoming goals.

When to send End-of-year Giving Statements?

End-of-year giving statements should be sent to donors by January 31 of the following year to meet IRS requirements and provide ample time for donors to prepare for tax season. These statements summarize the total contributions made by a donor within the previous calendar year and should include dates, donation amounts, and a statement confirming that no goods or services were received in exchange for the donations. Sending these statements promptly also reinforces professionalism, builds trust, and offers an opportunity to express appreciation for the donor's generosity.

Is sending End-of-year Giving Statements a good way to Thank Donors?

Yes. Sending end-of-year giving statements is an effective and timely way to thank donors while fulfilling tax-reporting requirements. These statements offer a perfect opportunity to not only summarize giving totals but also include personalized thank-you messages, highlight ministry impact, and encourage continued engagement. When paired with gratitude and storytelling, they become more than just receipts—they strengthen the donor relationship.

What are the Different Ways to Donate for Year-End Giving?

The different ways to donate for year-end-giving are listed below.

• One-Time Online Donations: Fast, easy gifts made through a church's website or giving platform.
• Recurring Donations: Monthly contributions that continue into the new year but start in December.
• Text-to-Give: Donors give quickly via mobile by texting a designated keyword or number.
• Mail-in Checks: Traditional donations sent by post before the December 31 deadline.
• In-Person Giving: Offerings made during Christmas or New Year services.
• Stock or Asset Donations: Gifts of appreciated assets for tax benefits.
• Employer Matching Gifts: Donations that are doubled through workplace giving programs.
• Donor-Advised Funds (DAFs): Contributions distributed to churches through fund management organizations.
• Crypto Donations: Giving cryptocurrency directly to the church's digital wallet.
• Planned or Legacy Gifts: Year-end updates to wills or estate plans that include the church.

How can ParishSOFT assist with End-of-year Giving Statements?

ParishSOFT can assist with end-of-year giving statements by streamlining the preparation, personalization, and delivery of end-of-year giving statements through its integrated church management and online giving tools. The system automatically compiles donor contribution histories, ensures IRS-compliant formats, and enables easy printing or secure emailing of statements. It also allows ministries to include custom thank-you notes, messaging about impact, and branded templates to make each statement meaningful and professional. By automating time-consuming tasks and reducing errors, ParishSOFT ensures that churches meet tax deadlines while strengthening donor appreciation and engagement.