Donations of money – cash, check, credit card, etc. – Amounts below $250
For amounts under $250 you simply need to keep a record of the payment that shows the date, amount and name of the organization – which must be a bona fide charitable organization.
Examples: cancelled check, bank or credit card statement that shows the required information.
A receipt or letter from the organization can be a substitute for the above.
$250 and over
There are additional requirements for amounts $250 and above. The organization must supply you with a statement of the details showing the deductible amount. The statement must also include whether or not any goods or services were provided. Oftentimes videos, CDs, tickets are provided and their value must be subtracted from the total donated to obtain the deductible amount. The document must show all of these details.
It is required that you have this document by the time you file your tax return or by the due date of the return. The IRS and tax courts have disallowed the deduction in cases where the document was not in hand. They wouldn’t allow a valid statement that had been obtained at a later date.
If there are multiple donations of $250 or more to the same organization they must provide you with separate statements or must list separately each amount on a single statement.
Keep in mind that the requirements in the first section apply to all donations.
Non cash donations
When you donate items to charity the organization will usually provide you with a receipt that shows the name and address of the organization, the date and a list of the items donated. It will not show the value of the goods donated so that will be up to you to determine.
If the amount claimed is over $500 your records must also include:
- How you obtained the goods – purchase, gift, inheritance, exchange
- The approximate date you acquired the property
- Your cost
If the amount exceeds $5,000 you must also get a qualified, written appraisal. You would group similar items together in determining whether the $5,000 threshold is exceeded.
For any vehicle donation over $500 the organization must provide you with Form 1098-C. You are required to file this form with your tax return.