DETHLOFF & ASOOCIATES BLOG - MOSTLY (BUT NOT ALL) TAX
Tomorrow is Giving Tuesday the non-profit worlds equivalent to Black Friday and Cyber Monday. In preparation for Giving Tuesday and other year end charitable contributions we'll review the IRS documentation requirements for charitable donations.
For cash donations of less than $250 you must have either a bank record or a written receipt from the charity acknowledging the donation.
For cash donations of $250 or more you must have a written receipt from the charity with the following wording or a close equivalent: "No goods or services were received in exchange for this receipt."
If goods or services were received, the charity must give the donor a good faith estimate of the value received. In this case you can only deduct the amount you gave in excess of the fair market value of goods or services received.
For non-cash (Goodwill, Habitat Restore, Salvation Army, etc.) donations the same rules apply. If your total non-cash donations exceed $500 you must also file an additional IRS form.
If you think your total non-cash donations will exceed $5,000 some special rules apply and you should check with us before making the donation.