Whether you make your gifts during this season of giving, or spread your charitable giving throughout the year, good record keeping is essential to making sure that you can qualify for the full charitable contribution deduction allowed by IRS.
First, you must be sure that the organization is eligible for a tax-deductible donation. The IRS offers Select Check an online search tool that you can use to verify that you are giving to a qualified organization. Places of worship are also eligible, but not included in this database. Gifts to individuals, political organizations or candidates are not eligible.
You must have documentation for all charitable gifts. See the table below for guidelines according to what type of donation you make.
Vehicle donations require special reporting requirements. Contact your tax professional for details before make your donation.
You need to have all of your acknowledgements in hand before you file your tax return. So now is the time to check your records and contact the recipients if you need statements. Atchley & Associates is happy to answer any questions you have regarding charitable donations deductions and your specific tax situation.