- To be deductible, charitable contributions must be made to qualified
organizations. Payments to individuals are never deductible.
- Taxpayers may also submit a written communication from the charity with the organization’s name, the date of the transaction and the amount of the contribution.
- Money donations are defined as those made in cash, or by check, electronic funds transfer, credit card or payroll deductions. For payroll deductions, the taxpayer should retain a pay stub, W-2 wage statement or other document showing the amount withheld for charity along with the pledge card showing the name of the charity.
- In addition, you can generally deduct the fair market value of any other property you donate to qualified organizations.
- Previously, taxpayers could back up donations of money with personal bank registers, diaries or notes made around the time of the donation. Such records are no longer sufficient.
- There is no change in the requirement that a taxpayer get an acknowledgment from the charity for each deductible donation of $250 or more.
- Those wanting to confirm that an organization is qualified for a charitable deduction can go to the tax agency’s Web site at http://irs.gov and look under “search for charities.” Churches, synagogues, temples, mosques and government agencies are not listed, but they qualify for deductible donations.
“IRS Tightens donation rules,”
Dec. 26, 2006