DOCUMENTING YOUR DONATIONS

Claiming a tax deduction for a qualified cash or non-cash (i.e. Goodwill) donation, if over $250, requires "contemporaneous written acknowledgement" (or CWA) from the donee organization.  The CWA is usually a receipt or letter, provided at the time of the donation or at the end of the year, which confirms the date and amount of the donation.

 

The letter or receipt should also include information on the organization, such as their name, address, tax ID number, that the donee is a registered 501(c)(3) tax-exempt organization, and that "no goods or services were exchanged for the donation."  In event of an audit, failure to obtain a CWA would put your donation deduction at risk.

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When claiming non-cash donation(s) of over $500, please include a summary list of the donated items, including a description of the items, their condition, fair market value (FMV), the date of the donation, and donee information.  Many organizations who accept non-cash donations will provide a small, fillable receipt, but larger donations may require a supplementary list or spreadsheet.

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Claiming donations of non-cash items over $5,000 require special acknowledgement and a professional appraisal.

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Political donations remain non-deductible for tax purposes, as are personal donations or "crowdfunding" contributions when made to persons rather than charitable organizations.

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Please contact our office if you have any questions or concerns regarding your donations.

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More information on non-cash items on the IRS website.

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