Life Events

A charitable gift is deductible only if you can prove it. The IRS is strict about documentation, and a missing receipt can cost you the deduction even when the gift was real. The records you need depend on the type and size of the gift.

Cash gifts

For any cash gift, regardless of amount, you need a bank record or a written record from the charity. Acceptable proof includes a canceled check, a bank or credit card statement, or a receipt showing the charity's name, the date and the amount. Notes in your own diary are not enough. Gifts through payroll deduction can be supported by a pay stub or Form W-2 and a pledge card.

Gifts of a certain size

For any single contribution at or above a threshold set by the IRS, you also need a written acknowledgment from the charity. It must describe what you gave, state whether you received anything in return and give a good-faith estimate of the value of any goods or services provided. You must have this in hand by the earlier of the date you file your return or its due date, including extensions.

Gifts with a benefit

When you pay more than something is worth, such as a ticket to a fundraising dinner or an auction purchase, only the excess is deductible. Charities are generally required to give a written disclosure when a payment above a set amount is partly a gift. Keep it.

Noncash gifts

• Smaller gifts: Get a receipt showing the charity's name, the date and a description of the property. You should also keep your own record of its fair market value and how you determined it.
• Larger gifts: You must file Form 8283 with your return.
• Highest-value gifts: A qualified appraisal is generally required, and the appraisal rules are detailed.
• Vehicles: You typically need a written acknowledgment on Form 1098-C or similar.
• Securities: Keep brokerage confirmations showing the transfer date and the number of shares.

Out-of-pocket volunteer costs

Unreimbursed costs of serving a charity, such as supplies or travel directly connected to your service, may be deductible. Keep receipts and a log of dates, destinations and purpose. The value of your time is never deductible.

Good habits

1. Create a folder for each tax year and file receipts as you receive them.
2. Photograph donated goods and list items on the drop-off day.
3. Ask for a receipt every time, and read it for accuracy.
4. Keep records for as long as your return could be examined, which is usually at least three years after filing.

The IRS guidance is in Publication 526, available at irs.gov. If you are unsure whether your records will hold up, contact us before you file.