Documenting charitable contributions

Tax law governing documentation for charitable contributions has changed in recent years, so make sure that you have the documentation that you need.

Monetary donations of any amount can be documented either by a statement from the qualified charity or by a bank record. Accepted documentation includes a written statement from the charity, canceled checks, bank statements, credit card statements, or payroll stubs (in the case of payroll deductions). Your documentation must show the name of the charity, the date, and the amount you donated. For monetary donations over $250, bank records are not enough; you must obtain a written statement from the charity.

Property donations of any amount, including clothing and household items, require a receipt that includes the name of the charity, the date of the contribution, a reasonably detailed description of the donated property, and its market value. (You can get values for commonly donated items here.) If you leave your donation at an unattended drop site and cannot get a receipt, just keep a written record of the donation that includes the above information. For property donations over $250, you must obtain an additional written acknowledgment from the charity, and for property donations over $500, you must also include when and how you got the property and its cost. Donations over $5,000require a qualified written appraisal.

To learn more details about documentation requirements, read this posting by the Internal Revenue Service or consult your tax advisor.