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TIPS FOR GIVING TO CHARITY

16/10/2017

1 Comment

 
Source: IRS
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Gifts to Charity: Six Facts About Written Acknowledgements
Throughout the year, many taxpayers contribute money or gifts to qualified organizations eligible to receive tax-deductible charitable contributions. Taxpayers who plan to claim a charitable deduction on their tax return must do two things:​
  • Have a bank record or written communication from a charity for any monetary contributions.
  • Get a written acknowledgment from the charity for any single donation of $250 or more.
Here are six things for taxpayers to remember about these donations and written acknowledgements:
  • Taxpayers who make single donations of $250 or more to a charity must have one of the following:
    • A separate acknowledgment from the organization for each donation of $250 or more.
    • One acknowledgment from the organization listing the amount and date of each contribution of $250 or more.
  • The $250 threshold doesn’t mean a taxpayer adds up separate contributions of less than $250 throughout the year.
    • For example, if someone gave a $25 offering to their church each week, they don’t need an acknowledgement from the church, even though their contributions for the year are more than $250.
  • Contributions made by payroll deduction are treated as separate contributions for each pay period.
  • If a taxpayer makes a payment that is partly for goods and services, their deductible contribution is the amount of the payment that is more than the value of those goods and services.
  • A taxpayer must get the acknowledgement on or before the earlier of these two dates:
    • The date they file their return for the year in which they make the contribution.
    • The due date, including extensions, for filing the return.
  • If the acknowledgment doesn't show the date of the contribution, the taxpayers must also have a bank record or receipt that does show the date.
More Information:
  • Can I Deduct My Charitable Contributions?
  • Publication 526, Charitable Contributions
  • Tax Topic 506, Charitable Contributions
  • Publication 1771, Charitable Contributions Substantiation and Disclosure Requirements
1 Comment
Vivian Black link
26/3/2020 09:07:28 pm

You made a great point about how you should have an acknowledgment of the donation. My husband and I are looking for a child abandonment charity donation that we can donate to since we are able to afford it right now. We will keep these tips in mind as we search for a professional that can help us best.

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