How to Prove a Charitable Deduction

Donating items or cash to charitable organizations can make a tremendous difference in the lives of needy individuals. Along with the benefits of charity, there come tax deductions for the donor, provided that one donates to a true charitable organization. What you will need to prove a charitable donation is dependent on the type of donation made and to whom it is furnished.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Financial records
• Receipts

Provide the Proof Required for Cash Donations Under $250

1. Offer proof when claiming a deduction of under $250. When making a charitable donation by check, provide the check number, amount, date posted and the name of the recipient.

2. Provide the name of the party the donations were made to when utilizing a credit card. Offer the amount of the charitable donation and the transaction date.

3. Supply the amount that was transferred for electronic transfers as well as the date the transfer was performed and the name of the charitable group receiving the transfer.

4. Present a receipt from the charity, indicating the title of the charity or organization, the amount of funds donated and the date of the donation. This method of proving your charitable donation may be presented in place of, or in addition to, canceled checks or other information indicating a transfer of funds.

Prove Cash Donations of Over $250

5. Obtain a letter or receipt acknowledging the donation from the charitable party.

6. Acquire a separate receipt or acknowledgment in writing for each donation made. Make sure it includes the total amount donated.

7. Coordinate with your employer to prove your deduction via a pay stub or other method if your contribution is a direct-payroll donation. Such proof can be used along with documentation or a pledge card from the charity, stating that no quid pro quo, gift or service has been provided in exchange.

Elect to Make a Non-Cash Donation

8. Offer a receipt or list of items donated to prove your charitable donations when you make a gift that does not involve the direct transfer of cash.

9. Confirm the final value of a deduction for a transportation-related item by obtaining a receipt and a Form 1098-C, indicating the final cash value of the item.

10. Track all expenses incurred when volunteering time. Obtain a letter to prove your services to a charitable organization. This letter should detail the service you provided and the dates of that service. It should also state whether or not anything was provided in return.

Tips & Warnings

• Charitable cash donations can include money, issued checks, credit cards and funds transferred by electronic debit.
• Plan on having all receipts and other proof of charitable donations available prior to the date you plan to file your taxes.
• Donations in excess of $5,000 will require additional documentation by an independent and professional appraiser, confirming the value of your donations.