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. Guideline Premium And Corridor ...

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

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

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

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

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

    Re-incorporating a company overseas in order to reduce the tax ...
Related Articles
  1. Investing

    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, schools and other nonprofit organizations will accept stock as a gift ...
  2. Personal Finance

    Don't Judge A Charity Based On Administrative Costs

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

    How To Start A Charity

    Here's a detailed guide that provides the steps needed to start a charity.
  4. 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.
  5. 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.
  6. 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?
  7. Taxes

    Give To Charity; Slash Your Tax Payment

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

    How To Spot Dubious Haiti Charity Pleas

    Make sure your dollars get to the earthquake victims, not the scamsters.
  9. Personal Finance

    Value-Added Tax (VAT)

    Value-added tax, or VAT, is a tax on the added value of a good as it moves through the supply chain to the end consumer. In effect, the tax is levied on the gross margin at each point in the ...
  10. Retirement

    Who is exempt from paying Social Security taxes?

    Learn about the groups of people who qualify for exemption from Social Security taxes, and explore the process of applying for exemption.

You May Also Like

Hot Definitions
  1. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  2. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  3. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  4. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  5. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  6. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
Trading Center