YEAR END REPORTING

Documentation for Charitable Donations

Charitable donations by cash, check or credit card must be substantiated in order to be deductible. To substantiate a contribution by cash or check, the donor must maintain a bank record or other written communication from the recipient showing the name of the recipient organization, and the date and amount of the contribution. This rule applies to any contribution, regardless of how small the amount. For contributions made by credit card, you must keep the credit card statement showing the name of the charitable organization, as well as the amount and date of the contribution.

For charitable donations of $250 or more, the donation must be substantiated by a written acknowledgement from the charity. The documentation must be obtained prior to filing the tax return for the year of the donation. The written acknowledgement must include the following:

• The amount of cash, and in the case of non-cash property, a description (but not value) of the property.
• A statement concerning whether the charity provided any goods or services in total or partial consideration for any non-cash property contributed. If the donor received nothing in return for the contribution, this must be stated.
• A description and good faith estimate of the value of any goods or services provided, if any. If the services consist solely of intangible religious benefits, a statement to that effect must be included.