Record of Charitable Contribution is a Must for Claiming Deduction !


record of charitable contributionRecords of charitable contribution like donation receipts etc. are a prerequisite for allowance of tax deduction against your charity donation . In earlier post , it was explained that readers should note 7 important points related to tax deduction on account of donation to charity organization . Then it was also explained that in general charity donation will not give you tax deduction on Schedule C i.e self employed business profit. Now , let us come to one of the most important procedural aspect of claiming tax deduction for charitable contribution- maintenance of records.

Record of Charitable Contribution in Cash/Bank/ Credit Card

You need to maintain following records , if you contributed cash to any charity organization

1) Bank Record –such as canceled check or bank statement, or Credit card statement if paid through credit card.
Must show date, amount of contribution, and organization name

2) Donation Receipt – Check that date, contribution amount, and organization name are clearly mentioned on it

3) Payroll record and pledge card, if made by payroll deduction

4. If cash donation is between $250 to $500, you need to maintain either payroll record or a donation acknowledgement letter ( donation receipt)  from the organization showing:

  • Date and amount of contribution
  • Whether any goods or services other than intangible religious benefit were provided by the organization (including a good faith estimate of the value)
  • A statement that the only benefit the taxpayer received was an intangible religious benefit

Record of non-cash Charitable Contribution

In case the charitable contribution was made in kind i.e non-cash mode, all of the following records must be maintained for the satisfaction of IRS audit

1) Receipt from organization showing:

  • Name of organization
  • Date and location of contribution.
  • Reasonably detailed description of property donated
  • A statement that the only benefit the taxpayer received was an intangible religious benefit

2) Fair Market Value ( FMV) of the property certificate explaining

  • method of valuation
  • Cost or basis of appreciated property
  • Amount claimed in current year if contribution is less than taxpayer’s entire interest

3) Terms of any condition attached to the contribution

If the value of the non-cash charitable contribution is greater than $ 250 , record for charitable contribution demands  a reasonable detailed description of contributed property !

Always consult the original guide irs charitable donations record




By Prashant Thakur

Prashant Thakur is a tax advisor . He has written two books on tax laws of India. He regularly writes on his paid-only website He is learning about the Internal Revenue Code of USA as many of clients and readers are of India origin and also are tax resident of USA . So . solving their tax issues require reference to IRC of USA.