Do you need a receipt for a noncash donation?

Yes. For noncash donations under $250 in value, you’ll need a receipt unless the items were dropped off at an unmanned location such as a clothing bin. Noncash donations from $250 to $500 in value require a receipt that includes the charity’s name, address, date, donation location and description of items donated.

What are the rules for making charitable donations?

Special rules apply to donations of certain types of property such as automobiles, inventory and certain other readily valued property. For more information, refer to Publication 526, Charitable Contributions. For information on determining the value of your noncash contributions, refer to Publication 561, Determining the Value of Donated Property.

What’s the penalty for not substantiating a donation?

The penalty is $10 per contribution, not to exceed $5,000 per fund-raising event or mailing. The charity can avoid the penalty if it can show that the failure was due to reasonable cause.

Do you need a W-2 for a donation?

Donations made through payroll deduction require you to keep a pay stub, Form W-2 or other document furnished by your employer that shows the date and amount of your contribution. In addition, you’ll also want to keep the pledge card showing the name of the organization.

Special rules apply to donations of certain types of property such as automobiles, inventory and certain other readily valued property. For more information, refer to Publication 526, Charitable Contributions. For information on determining the value of your noncash contributions, refer to Publication 561, Determining the Value of Donated Property.

The penalty is $10 per contribution, not to exceed $5,000 per fund-raising event or mailing. The charity can avoid the penalty if it can show that the failure was due to reasonable cause.

Where can I find substantiating charitable contributions?

Substantiating Charitable Contributions. Many charitable organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with section 170. Most eligible organizations are listed in Tax Exempt Organization Search.

What is a quid pro quo contribution to a charity?

A charitable organization must provide a written disclosure statement to donors of a quid pro quo contribution in excess of $75. A quid pro quo contribution is a payment made to a charity by a donor partly as a contribution and partly for goods or services provided to the donor by the charity.