Final regulations regarding substantiation for charitable contributions

Final regulations regarding substantiation for charitable contributions

On July 30th 2018 the IRS issued final regulations relating to the substantiation and reporting requirements for charitable contributions which address substantiation requirements for contributions of more than $500 and of clothing and household items.

In order to substantiate a charitable contribution the following substantiation requirements must be met:

Cash Contributions

Under $250

  • Bank record or written communication from the charity
    • Blank pledge cards provided by the donee organization are not sufficient substantiation

$250 or more

  • Obtain contemporaneous written acknowledgement from the donee organization

 Non-cash Contributions

Donated property must be in good condition or better.

Under $250

  • Obtain a receipt or keep reliable records
    • Reliable records must show the following information:
      • Name and address of the donee
      • Date of the contribution
      • Description of the property in sufficient detail including the condition
      • Fair market value on the date of contribution
      • Method used to determine fair market value

$250 – $500

  • Obtain contemporaneous written acknowledgement from the donee organization

$500 or more

  • Obtain contemporaneous written acknowledgement and file a completed form 8283

$5,000 or more

  • Obtain contemporaneous written acknowledgement, file a completed form 8283, and obtain a qualified appraisal
    • Exception to appraisal requirements for contribution of publicly traded securities

$500,000 or more

  • Same as $5,000 but appraisal must be attached to the taxpayers tax return

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By |August 10th, 2018|Categories: Accounting & Bookkeeping, Individual Tax, IRS, Nonprofit Organizations|Comments Off on Final regulations regarding substantiation for charitable contributions

About the Author:

Daniel Novak is a Manager in our Novato office.