Substantiating Charitable Donations for Tax Purposes

Individual Tax

Mar 15

To claim a deduction for a charitable donation, you must have certain documentation. The current tax law requirements are summarized in the table below.

  
    Contribution Type
    Amount Contributed
    Records Required
  

    Monetary (cash, credit card, check)
    Less than $250
    Bank record or written receipt: 
Name of organization
Amount of contribution
Date of contribution

  

    Monetary (cash, credit card, check)
    $250 or more
    Same as for monetary contribution of less than $250 plus
      written acknowledgement stating:
      Contribution amount
Whether charity provided goods/services in exchange
Description, estimated value of goods/services provided

  

    Monetary (payroll deduction)
    Any amount
    Pay stub, Form W-2, or other document from employer that
        shows amount withheld for payment to charity
Pledge card showing charity's name
Written acknowledgement if $250 or more is deducted from
        single paycheck

  

    Property
    Less than $250
    Receipt, letter, other written communication from charity
        stating:
      Name of organization
Date and location of contribution
Property description
(Receipt not required when impractical to obtain)
Record of property's fair market value on contribution date
        and how value was determined
      

  

    Property
    $250 to $500
    Same as for property donation of less than $250 plus written
      acknowledgement that states whether charity provided goods or
      services in exchange and, if so, their value 


      Written acknowledgement
    
  

    Property
    $500 to $5,000
    Form 8283 (filed with tax return) stating:
      How and when property was acquired
Cost or other adjusted basis of property (unless publicly
        traded securities)

  

    Property
    $5,000 plus	
    Same records as for property donations of $500-$5,000 plus:
      Qualified appraisal (exceptions apply)
Appraisal summary with Form 8283

  

Additional Tips

Here are some other points to keep in mind.

Multiple contributions. If you make multiple contributions of less than $250 to the same charity during the year, you generally should treat each contribution separately in determining the amount of the contribution and the supporting records you should have.

Donations of clothing and household items. To be deductible, these donations must be in "good used" condition or better unless you are claiming a deduction of over $500 and include a qualified appraisal of the item with your return. If you can't get a receipt from the charity because you left items at a charity's unattended drop site, note the charity's name, the contribution date, and a description of the items you donated and keep it on file. Also note the donated items' fair market values and how you determined the values.

Text message donations. If you donate money by sending a text message -- to a disaster relief charity, for example -- the donation will be routed through the cell phone company you use. The company forwards the amount you donate to the charity, and the charge appears on your bill. Therefore, the telephone bill showing the date and amount of your donation to the organization will serve as the proof you need to substantiate your contribution.