157: Old Woman Shakes Fist at Sky | How Classy May Be Hurting Your Donor Relationships

Nonprofit newsflash - your donation platform might be quietly annoying your biggest donors

In this episode, Meghan and I dig into some nonprofit LinkedIn drama sparked by a post from the one and only Eve Borenstein. Here's the situation:

You gave a big donation, and you received an auto-generated donation receipt from the org's donation platform. The problem?  The gift acknowledgement letter and receipt are WRONG.  

We break down why donor acknowledgement letters matter so much, what the IRS actually requires in those receipts for gifts over $250, and how automated systems can unintentionally damage donor trust. We also talk about the growing trend of for profit software companies promising to "handle everything" for nonprofits while missing critical compliance details. If you rely on online donation platforms, this conversation will likely make you rethink what you are outsourcing and what still needs human attention.

What You'll Learn:

• What SHOULD be in your donor acknowledgement letters
• How bad receipts can create donor frustration
• Where donation platforms and tech solutions for nonprofits can fall short
• How automation can quietly hurt your donor retention

Bottom line: Donor relationships are built on trust and gratitude. When your systems create friction instead of appreciation, even unintentionally, it can cost you future support and credibility.

Resources from this Episode

• Listen to our past episode with Eve Borenstein here: https://birkenlaw.com/charity-therapy-podcast/ct104/
• Read Eve Borenstein's LinkedIn post about Classy here: https://www.linkedin.com/posts/taxexemptlaw_so-annual-gripe-continues-last-week-activity-7412874086961541120-7bsN?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAEjProBQJRvgNexcp-oDkRTlIoUrU5fW7Q
• Listen to our last episode with Ephraim about GoFundMe here: https://birkenlaw.com/charity-therapy-podcast/ct150/
• Generate a good Gift Acknowledgement Letter here: https://birkenlaw.com/mg-document-app/gift-acknowledgment-letter/
• Previous Episode: Can Nonprofits Give Tax-Free Money to People?: https://birkenlaw.com/charity-therapy-podcast/156-nonprofit-give-money/
• Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/01/CT157_Transcript.pdf

Connect with Us

• Jess Birken: https://www.linkedin.com/in/jessbirken/
• Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/

Listen & Engage

• Listen on Apple Podcasts | Spotify | YouTube | Amazon Music
• Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review"
• Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story  

Stay Connected

• Sign up for the Birken Law Email list: https://birkenlaw.com/signup/  
• Follow us on Facebook, Instagram, Twitter