A year-end statement is a one-page letter that informs your contributors of their total donation for the year. It also serves as a record of their contributions for tax purposes. Donors want to know how their money is being spent. If you give to an organization who wants complete anonymity, it can be difficult or impossible to get this information. A year-end statement allows donors to see exactly where their funds are going. It also provides a record for future reference. Without a doubt, the most important thing about a year-end statement is that it gives information. The more information that you can provide contributors, the better. For example: "50% of my donations go towards helping orphans in Uganda." This gives contributors some insight into how your charity operates and what they're helping to achieve. It's a simple sentence but it's effective! Secondly, let people know when to expect their money back. If possible, make sure that your statements are sent out well before Christmas so that people have time to allocate their donations. Finally, if possible, include a picture of someone who has been helped by your charity.