Good Records Key to Claiming Gifts to Charity

Donation boxKeeping good records is key to qualifying for the full charitable contribution deduction allowed by law. In particular, this includes ensuring that you have received required statements for two contribution categories—each gift of at least $250 and donations of vehicles:

  • To claim a charitable contribution deduction, you must get a written acknowledgement from the charity for all contributions of $250 or more. This includes gifts of both cash and property. For donations of property, the acknowledgement must include, among other things, a description of the items contributed. All acknowledgements must be in hand before filing a tax return and, though they are not filed with the return, they must be retained along with other tax records.
  • Special reporting requirements generally apply to vehicle donations, and to claim these donations, you must attach any required documents to your tax return. The deduction for a car, boat or airplane donated to charity is usually limited to the gross proceeds from its sale. This rule applies if the claimed value is more than $500. Form 1098-C or a similar statement must be attached to the tax return.

It is important to note that only donations to eligible organizations are tax-deductible. Select Check, a searchable online tool available on IRS.gov, lists most organizations that are eligible to receive deductible contributions. Churches, synagogues, temples, mosques and government agencies are eligible even if they are not listed in the tool’s database.

Other highlights:

  • You can only claim gifts to charity if you itemize your deductions on Form 1040 Schedule A. If you choose the standard deduction or file a short form (Form 1040A or 1040EZ), you cannot deduct your charitable contributions.
  • Use the 2014 Form 1040, Schedule A to determine whether itemizing is better than claiming the standard deduction.
  • If you are donating property, a special form for reporting noncash contributions must usually accompany your return. If the amount of the deduction for all noncash contributions is over $500, a properly-completed Form 8283 is required.

For more information on charitable contributions, visit irs.gov.

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