To substantiate charitable contributions, taxpayers must adhere to specific requirements based on the type and amount of the contribution. Here are the detailed substantiation requirements:

General Requirements for All Contributions

1. Cash Contributions:

   • Cancelled Check: A cancelled check can serve as proof.
   • Receipt from Donee: A receipt showing the name of the donee, the date, and the amount of the contribution.
   • Other Reliable Written Records: These records must state the name of the donee, the date, and the amount of the contribution. The reliability of these records is determined based on all facts and circumstances.

2. Noncash Contributions:

   • Receipt from Donee: The receipt must include the name of the donee, the date and location of the contribution, and a description of the property in detail reasonable under the circumstances.

Additional Requirements for Contributions of $250 or more

1. Contemporaneous Written Acknowledgment:
   • Content: The acknowledgment must include the amount of cash and a description (but not the value) of any noncash property contributed, whether the donee provided any goods or services in consideration for the contribution, and a description and good-faith estimate of the value of any goods or services provided, or a statement that the goods or services consisted solely of intangible religious benefits.
   • Timing: The acknowledgment must be obtained on or before the earlier of the date on which the taxpayer files the return for the year in which the contribution was made or the due date (including extensions) for filing such return.

Additional Requirements for Noncash Contributions of More Than $500

1. Written Records:
   • Content: The records must include the manner of acquisition and the approximate date of acquisition of the property, the cost or other basis of the property, the fair market value of the property at the time it was contributed, and the method used in determining its FMV.

Additional Requirements for Noncash Contributions of More Than $5,000

1. Qualified Appraisal:
   • Obtaining an Appraisal: Taxpayers must obtain a qualified appraisal of the items contributed.
   • Appraisal Summary: Attach a fully completed appraisal summary to the tax return on Form 8283, “Noncash Charitable Contributions”.
   • Records: Maintain records containing the information required by the regulations

Practical Implications

1. Reliability of Records:

   • Self-Created Records: A self-created spreadsheet listing the amount and date of each alleged contribution may not be considered reliable unless accompanied by other documents such as bank statements or credit card statements.
   • Contemporaneous Requirement: The acknowledgment must be obtained by the donor on or before the earlier of the date on which the tax return is due (including extensions) or actually filed.

2. Goods or Services Provided:

   • Statement Requirement: The donee’s receipt should state whether any goods or services were provided to the donor in consideration for the contribution. If this statement is not included, the receipt usually cannot be qualified as a contemporaneous written acknowledgment.

By following these detailed substantiation requirements, taxpayers can ensure that their charitable contributions are properly documented and eligible for deduction under the Internal Revenue Code.

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Clergy Financial Resources
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Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

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Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369

Tel: (888) 421-0101 
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