Recordkeeping for Cash Donations

• Posted on March 25, 2009
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For monetary (cash, check) gifts, regardless of the amount, you should have a canceled check (bank record) or a written communication from the donee showing:

• The name of the donee organization,

• The date of the contribution, and

• The amount of the contribution.

The recordkeeping requirements may not be satisfied by maintaining other written records. This means that unless the charitable organization provides a written communication, cash donations put into a “Christmas kettle,” church collection plate, and pass-the-hat collections at youth sporting events will not be deductible. Donations by debit or credit card can be substantiated by bank records.

While many organizations may take the responsibility of providing a receipt, the tax law actually places this responsibility of getting acknowledgment on the gift donor. “This provision does not impose an information requirement upon charities; rather it places the responsibility upon taxpayers who claim an itemized deduction, without a bank record for substantiation, to request (and maintain in their records) substantiation from the charity.”

The charity’s acknowledgment must contain the following:

• The amount of money and a description of the value of other property, if any, contributed

• Whether the charity provided any goods or services in return for the gift

• A description and reasonable estimate of the value of the goods or services provided