Good Record Keeping for Charitable Deductions

Via Planned Giving Design Center

The Internal Revenue Service reminded taxpayers planning to claim charitable donations to make sure they have the records they need before filing their 2014 tax returns.

For any taxpayer, keeping good records is key to qualifying for the full charitable contribution deduction allowed by law. In particular, this includes insuring that they have received required statements for two contribution categories—each gift of at least $250 and donations of vehicles.

First, to claim a charitable contribution deduction, donors 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 ...

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Token Benefit; Limitations for 2015 Charitable Contributions

Interesting article from the Planned Giving Design Center ...

By Richard L. Fox, Esquire


When a donor receives goods or services in consideration for a contribution, only the excess of the amount of the contribution over the value of the goods and services received in return is deductible for income tax purposes.  In addition, where the amount of the contribution exceeds $75, the charity is required under the “quid pro quo” rules of IRC § 6115 to provide a written statement to the contributor providing a good faith estimate of the value of the goods and services provided.

In Rev. Proc. 90-12, 1990-1 COB. 471, the IRS provides specific “safe harbor” rules for situations where “token benefits” received by a donor in the context of a fund-raising campaign will be treated as having such insubstantial value that they will be disregarded for purposes of the foregoing rules under IRC § 6115.

Where these safe harbor rules are met, the benefit received by the contributor is also disregarded for purposes of the “contemporaneous written acknowledgment” rules under IRC §170(f)(8) applicable to contributions of $250 or more.


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See your tax adviser before implementing any tax strategies.