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. Section 7702

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

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

    A charitable donation for which the donor receives something ...
  4. Corporate Inversion

    Re-incorporating a company overseas in order to reduce the tax ...
  5. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital ...
  6. American Taxpayer Relief Act Of ...

    A U.S. bill signed by President Obama on January 2, 2013, that ...
Related Articles
  1. Investing

    Can I donate stock to charity?

  2. Personal Finance

    Don't Judge A Charity Based On Administrative ...

  3. Entrepreneurship

    How To Start A Charity

  4. Retirement

    Gifting Your Retirement Assets To Charity

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center