Proof of Charitable Contributions

AAA

DEFINITION of 'Proof of Charitable Contributions '

Substantiation required by the Internal Revenue Service for a taxpayer to claim a donation of money, property or financial assets as an itemizable federal income tax deduction. Acceptable forms of proof of charitable contributions include bank statements, payroll deduction records and written statements from the recipient charity containing the charity’s name, contribution date and contribution amount.

INVESTOPEDIA EXPLAINS 'Proof of Charitable Contributions '

The IRS has slightly different rules for proof of charitable contributions depending on the contribution amount. One of the above three forms of proof is required regardless of the amount, but for contributions of $250 or more, the charity must specify whether it provided the donor with any goods or services in exchange for the gift.

Taxpayers claiming a deduction for more than $500 in noncash contributions must also fill out IRS form 8283 and file it with their annual tax return.

In addition, the IRS requires an independent substantiation of value, such as an appraisal, for noncash donations exceeding $5,000. Taxpayers can consult IRS publication 561 for help determining the value of donated property.

RELATED TERMS
  1. Tax Deductible Interest

    A borrowing expense that a taxpayer can claim on a federal or ...
  2. Guideline Premium And Corridor ...

    A test used to determine whether an insurance product can be ...
  3. Cash Value Accumulation Test (CVAT)

    A test method used to determine whether a financial product can ...
  4. Section 7702

    The section of the United States Internal Revenue Code that defines ...
  5. Working Tax Credit (WTC)

    A tax credit offered to low-income individuals working in the ...
  6. Quid Pro Quo Contribution

    A charitable donation for which the donor receives something ...
RELATED FAQS
  1. Can I donate stock to charity?

    Giving stock, instead of cash, as a donation can greatly benefit both parties. You will find that most charities, hospitals, ... Read Full Answer >>
  2. How is a corporate bond taxed?

    A corporate bond is taxed through the interest earned on the bond, through capital gains or losses earned in the early sale ... Read Full Answer >>
  3. What are some of the advantages and disadvantages of absorption costing?

    Companies must choose between using absorption costing or variable costing in their accounting systems. There are advantages ... Read Full Answer >>
  4. What taxes will I pay if I win a lot of money while gambling in Las Vegas?

    Every year, thousands of people travel to gambling hot spots, such as the Nevada cities of Las Vegas and Reno, with the hope ... Read Full Answer >>
  5. How can I lower my effective tax rate without lowering my income?

    There are lots of ways to lower your effective tax rate, although your individual circumstances determine whether you can ... Read Full Answer >>
  6. What is the justification for allowing deferred tax liabilities?

    A deferred tax liability tracks the temporary difference that arises between a company's income taxes that will be due in ... Read Full Answer >>
Related Articles
  1. Personal Finance

    Don't Judge A Charity Based On Administrative Costs

    It is unwise to base charitable giving on administrative costs.
  2. Entrepreneurship

    How To Start A Charity

    Here's a detailed guide that provides the steps needed to start a charity.
  3. Retirement

    Gifting Your Retirement Assets To Charity

    There are several things to consider when it comes to this type of charitable giving. Make sure you're well informed.
  4. Personal Finance

    Charity CEOs: Are They Being Paid Too Much?

    Deciding how much charities should spend on the salaries of their CEOs is more difficult than you may think.
  5. Personal Finance

    Is The Billionaire Charity Pledge A Good Idea?

    Will Bill Gates' call for billionaires to become more active in charitable giving do all the good it could?
  6. Taxes

    Give To Charity; Slash Your Tax Payment

    Being generous has never been more (financially) rewarding!
  7. Taxes

    How To Spot Dubious Haiti Charity Pleas

    Make sure your dollars get to the earthquake victims, not the scamsters.
  8. Taxes

    What is Adjusted Gross Income?

    Adjusted gross income (AGI) is a term from the Internal Revenue Code. AGI is used to determine a person’s income taxes due.
  9. Bonds & Fixed Income

    Abenomics Vs. Quantitative Easing: Which Works Best?

    Abenomics and QE are versions of extraordinary stimulus measures initiated by the Japanese government and the U.S government, respectively.
  10. Bonds & Fixed Income

    How Are Zero-Coupon Municipal Bonds Taxed?

    What every investor needs to know about taxes and zero-coupon muni bonds.

You May Also Like

Hot Definitions
  1. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  2. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  3. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  4. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  5. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center