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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