Home > Legal Library > Article




Join Matindale-Hubbell Connected


Tax Tip: Don't Lose Your Charitable Deduction for Lack of Paperwork




by:
Paul G. Topolka
Nexsen Pruet, LLC - Greensboro Office

 
February 4, 2014

Previously published on January 22, 2014

Charitable contributions are only deductible if you itemize and have the proper substantiation.

For cash contributions of less than $250, you must have either a cancelled check/credit card receipt or a written statement from the charity that substantiates the donation.

For cash contributions of $250 or more, a cancelled check/credit card receipt is not enough.

You must obtain, by the time your return is filed (including extensions) in order to satisfy the contemporaneous requirement of the Section 170(f)(8), a written statement from the charity. It must:

  • Reflect the amount of the donation;
  • List any significant goods or services provided in exchange for the donation (other than intangible religious benefits); or,
  • Specifically state that “no goods or services were provided in exchange for this contribution.”

Obtaining the statement that “no goods or services were provided in exchange for this contribution” from the charity when you are audited will not satisfy the contemporaneous requirement.

Numerous taxpayers have learned this the hard way - losing their cases before the Tax Court on this very point. So please review your charitable deductions now and look for the magical statement that:

“No goods or services were provided in exchange for this contribution.”



 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

View More Library Documents By...

 
Author
 
Paul G. Topolka
Practice Area
 
Corporate Law
Taxation
 
Nexsen Pruet, LLC Overview