14.14 Records Needed To Substantiate Your Contributions
The type of records you must keep to substantiate your donations generally depends on their amount and whether you are contributing cash or property.
Cash contributions.
~ A deduction is not allowed for a cash contribution, regardless of amount, unless you have a receipt or bank record to substantiate it. This includes donations made by check, credit card, electronic fund transfer, or gift card redeemable for cash. You need a cancelled check, bank copy of both sides of a cancelled check, electronic fund transfer receipt, monthly account statement, credit card statement, or written receipt (including e-mail) that shows the name of the organization and the date and amount of the contribution. Maintaining a diary or log is not sufficient substantiation. If you volunteer your services to a charity, you need similar records to substantiate a deduction for your out-of-pocket expenses of under $250 (14.4).
For a contribution of $250 or more, a cancelled check or receipt showing the name of the organization and the date and amount of your contribution is not enough. You must timely obtain a written acknowledgment from the charity, as described below.
For a contribution made by payroll deduction, you need to keep a pay stub, Form W-2, or other employer-furnished document showing the amount withheld as a donation, along with a pledge card or similar document from the charity. If the amount withheld from a single paycheck is $250 or more, the pledge card must include a statement to the effect that no goods or services were provided in return for the contribution.
Noncash contributions under $250.
~ As proof of your donation, you need a dated receipt from the organization that provides a reasonably detailed description of the property. However, if it is impractical to obtain a receipt, as where you deposit canned food at a charity’s drop site, you can satisfy the recordkeeping requirement with a contemporaneous notation that documents the contribution.
You need a written acknowledgment from the charity for cash or noncash contributions of $250 or more.
A written acknowledgment is mandatory to prove cash or noncash contributions of $250 or more; see below for content details. The acknowledgment requirement does not apply if the donation is less than $250, but if the contribution exceeds $75, you must be given a disclosure statement (see below) from the charity estimating the value of any benefits you received in return for the donation.
The IRS exempts from the acknowledgment requirement grantors of a charitable lead trust, charitable remainder annuity trust, or charitable remainder unitrust. Since a specific charity does not have to be designated as beneficiary at the time the trust transfer is made, there may be no organization available to provide an acknowledgment.
A separate acknowledgment rule applies if you are deducting over $500 for a motor vehicle, boat, or airplane. You must attach Copy B of Form 1098-C to your return (14.7).
Content of acknowledgment.
An acknowledgment for a donation of $250 or more may be a letter, e-mail, computer-generated form, or postcard. If you gave cash, the amount of the donation must be shown. If you gave property, the property must be described in the acknowledgment, but the charity does not have to value it. If the acknowledgment does not show the date of the contribution, you need a dated bank record or receipt.
The acknowledgment must state whether or not you have received any goods or services from the charity in exchange for the contribution. If you have, the receipt must include a statement describing such benefits and estimating their value. However, “token” items and certain membership benefits, as described in 14.3, do not have to be described or valued. There is also an exception if the contribution is to a religious organization and the only benefits received are “intangible” religious benefits, such as admission to religious ceremonies; these do not have to be described or valued, but the statement must indicate that they are the sole benefits provided.
Filing Tip
Deadline for 2012 donation acknowledgments.
For a 2012 contribution, the deadline for obtaining an acknowledgment is the date you file your 2012 return, but no later than the April 15, 2013, filing due date or, if you obtain a filing extension, the extended due date. Keep the acknowledgment with your records; it does not have to be attached to your return.
Payments throughout the year.
For purposes of the $250 threshold for an acknowledgment, each contribution made during the year is separately considered. Thus, for small donations (each under $250) made during the year, you do not have to obtain an acknowledgment even if they total $250 or more.
If contributions are made by payroll deductions from your wages, the amount withheld from each paycheck is treated separately. An acknowledgment is not required unless withholding on a single paycheck is at least $250. A pay stub or Form W-2 from the employer indicating the amount of a single withholding over $249 is considered a valid “acknowledgment” a pledge card or other document from the charity must state that you have not received benefits in exchange for the payroll deduction contribution.
A charity must provide a disclosure statement if you contribute more than $75 and receive benefits.
If you contribute more than $75 but less than $250 to a charity, the charity is required to give you a “disclosure” statement that estimates the value of any benefits you received, such as concert tickets or books. The statement must instruct you to deduct only the excess of your contribution over the value of the benefits. Certain “token” items and membership benefits, and “intangible” religious benefits, can be disregarded; see Table 14-1. If a required disclosure statement is not provided when contributions are solicited, it must be provided when you make a contribution exceeding $75.
Table 14-1 What You Need To Substantiate Your Donations
| For each individual contribution of— | You need— |
| Cash | Regardless of amount, you need a cancelled check, bank copy of a cancelled check, account statement, electronic fund transfer receipt, credit card statement, or written receipt from the charity showing the name of the organization and the date and amount of the contribution. In addition, for a donation of $250 or more, you need a written acknowledgment as described below. |
| Less than $250 | For a cash donation, you need a bank record or receipt as described above. For a noncash donation, you need a receipt from the charity unless it is impractical to obtain one, as when you have deposited canned food in an organization’s drop site. The receipt must show the name of the organization and the date and amount of the contribution and provide a reasonably detailed description of the property, which for securities includes their type and whether they are publicly traded. In addition, if you contributed over $75 and received benefits, the charity is required to give you a “disclosure” statement that estimates the value of any benefits you received, such as concert tickets or books. The statement will tell you to deduct only the excess of your contribution over the value of the benefits. If a required disclosure statement is not provided when contributions are solicited, it must be provided when you make a contribution exceeding $75. The disclosure statement is not required if the only benefits you receive are “token items” or membership benefits that can be disregarded (14.3). Nor is it required where you contribute to a religious organization and the only benefits you receive are “intangible religious benefits.” An example of an intangible religious benefit would be admission to religious ceremonies. A Congressional committee report also suggests that tuition for wholly religious education that does not lead to a recognized degree would qualify. |
| $250 or more | For each cash donation of $250 or more, you need a written acknowledgment from the charity that indicates whether you were given any goods or services in exchange for your contribution (14.14). You may not rely on a cancelled check or credit card statement to document a cash contribution of $250 or more. A written acknowledgment is also required for a donation of property if you are claiming a deduction of $250 or more, but the charity does not have to value the property, just describe it. If you received any goods or services from the charity in exchange for the contribution, the acknowledgment must estimate their value unless you receive only “token” items or “intangible religious benefits” as discussed in the preceding paragraph. The deadline for obtaining acknowledgments is the date you file your return. If you file after the filing due date or extended due date, get the acknowledgment by the due date or extended due date. Keep the acknowledgment from the charity with your tax records; do not attach it to your tax return. If your total deduction for all property donations exceeds $500, you must report each of the contributions on Form 8283 (not just those valued over $500). If you are not allowed to deduct fair market value for a property donation under the rules at 14.6, you must attach a statement to Form 8283 explaining the reduction for the appreciation. For each deduction of property for which you are claiming a value over $5,000, you need a written appraisal from a qualified appraiser (14.15). |
| More than $500 in the case of a donated car, other motor vehicle, boat, or airplane | Special acknowledgment rules apply where the claimed value of the vehicle exceeds $500 (14.7). |
Noncash contributions.
For donations of property, the records you must keep depends on the amount of the deduction claimed. For a noncash contribution of under $250, you need as proof of your donation a dated receipt from the organization that provides a reasonably detailed description of the property. However, if it is impractical to obtain a receipt, as where you deposit canned food at a charity’s drop site, you can satisfy the recordkeeping requirement with a contemporaneous notation that documents the contribution.
For a noncash contribution of $250 or more, you must obtain a written acknowledgment from the charity as described above. The acknowledgment must indicate if you received benefits in exchange for your contribution; see the above discussion for acknowledgment details.
To claim a deduction for more than $500 but no more than $5,000, you need, in addition to the written acknowledgment, records that show when and how you got the property (purchase, gigt, inheritance), your cost or other basis for the property, and the fair market value; you must report this information on Form 8283 (14.15).
For a deduction over $5,000, you need the written acknowledgment and in most cases you also need an appraisal from a qualified appraiser. You must summarize the appraisal on Form 8283 but generally do not have to attach it to your return. see 14.15.