Good Records Are Necessary
Record Keeping of Non-Cash Donations:
For non-cash items donated to a qualified charity,
keep a list of the items you donate which contains
a description of the property, its cost and FMV,
when and how you acquired it. If the property has
appreciated in value, be sure to get an appraiser's
report (since special rules apply to appreciated
property, check with your tax advisor before you
make your contribution). At the time of your donation,
get a receipt from the charitable organization
containing the date and the organization's name
and address.
Record Keeping For Cash Donations
For cash gifts, you should have a canceled check
or a receipt from the donee. In addition, for each
gift of $250 or more, you must obtain a timely
acknowledgment of your gift from the donee organization;
otherwise, a deduction is not allowed.
While many organizations may take the responsibility
of providing a receipt, the tax law actually places
this responsibility of getting acknowledgment on
you as the gift donor. “This provision does
not impose an information requirement upon charities;
rather it places the responsibility upon taxpayers
who claim an itemized deduction of $250 or more
to request (and maintain in their records) substantiation
from the charity.”
The charity’s acknowledgment must contain
the following:
