General Documentation Guidelines for Deductible Charitable Contributions

As the year comes to a close, many people consider making charitable contributions to their favorite organizations by year end.  The following chart outlines in general the required documentation.  Without timely documentation, the tax deduction is lost.  IRS form instructions should be consulted for special rules.

Required Documentation for Charitable Deductions
	Amount	Required Records
Cash	Single cash contribution of less than $250.	Cancelled check, bank record, credit card statement or written acknowledgment from the charity.
	Single cash contribution of $250 or more.	A tax qualified receipt that contains the following elements: ·        Amount of the contribution, ·        Name of the donor, ·        States that either:  i) no goods or services were provided by the charity in consideration for the contribution, or ii) provides a description and good faith estimate of the value of any goods or services provided by the charity, ·        If only “intangible religious benefits,” were received, then the receipt must explicitly state this, and ·        The donor must receive the receipt no later than the due date of the original federal tax return (including any extensions obtained).
	Payroll Deduction	Pledge card, W-2, Paystub etc.
Non-Cash	Non-cash contributions of less than $250.	Written acknowledgment from the charity or other record showing the details of the donation.  Complete Form 8283 Section A Part 1, if the total of such donations exceeds $500 but is $5,000 or less.
	Non-cash contribution of $250 or more.	Tax qualified receipt from the charity.  Complete Form 8283 Section A Part 1, if the total of such donations exceeds $500 but is $5,000 or less.
	Non-cash contribution of publicly traded securities.	Tax qualified receipt from the charity.  Complete Form 8283 Section A Part I even if over $5,000.
	Non-cash contribution of non-publicly traded securities and other property over $5,000.	Tax qualified receipt from the charity.  Complete Form 8283 Section B and obtain a qualified appraisal.

If you are considering donating a vehicle to a charitable organization, consult IRS Publication 4303 which provides specific guidelines on vehicle donations.

The amount of any deductible contribution must be reduced by the fair market value (FMV) of any goods or services received.  If the FMV of the goods received exceeds the amount of the contribution, none of the contribution is deductible.  Many organizations host charitable events which include auctions.  At many auctions the FMV is listed on the bid sheets.  Occasionally individuals will bid on an item simply because they wish to donate to the organization but do not have any intention of ever using the item.  In such a case, the individual should simply donate cash instead of bidding on an item, in order to deduct the full amount of the donation.

For individuals who volunteer for charitable organizations, the cost of the individual’s time and and value of his or her services are not deductible.  However, a volunteer may deduct mileage (at 14 cents per mile) and any unreimbursed out-of-pocket expenses directly connected with services provided.  Documentation of the time, place, date, amount and nature of the expenses is required.

If you are unsure whether or not an organization is eligible to receive tax-deductible charitable contributions, verify the organization’s status by using the IRS’ Exempt Organizations Select Check tool.