Sustaining Charitable Gifts
At a casual outdoor gathering, people serve and receive food from a table laden with salads. A woman in a blue shirt cheerfully serves while engaging with children and adults alike, embodying the spirit of charitable giving in this warm, social setting.

There are virtually countless charitable organizations to which you might donate. You may choose to give cash or to contribute noncash items such as stock, personal property, or real estate. Whatever you donate, once you do the good deed, you owe it to yourself to claim a
tax deduction (provided you itemize rather than taking the standard deduction). One requirement is documentation. And precisely what you’ll need depends on the type and value of your donation. Here are five things to know about substantiating charitable donations:

      1. Cash contributions of less than $250 are the easiest to substantiate. A canceled check or credit card statement is sufficient. Alternatively, you can obtain a receipt from the recipient organization showing its name, as well as the date, place, and amount of the contribution. Bear in mind that unsubstantiated contributions aren’t deductible. So you must have a receipt
        or bank record.
      2. Noncash donations of less than $250 require a bit more. You’ll need a receipt from the charity. Plus, you typically must estimate a reasonable value for the donated item(s). Organizations that regularly accept noncash donations typically will provide you with a form for doing so. Keep in mind that, for donations of clothing and household items to be deductible, the items generally must be in at least good condition.
      3. Bigger cash donations mean more paperwork. If you donate $250 or more in cash, a canceled check or credit card statement won’t be sufficient. You’ll need a contemporaneous written acknowledgment from the recipient organization that meets IRS guidelines. Among other things, a contemporaneous written acknowledgment must be received on or before the earlier of the date you file your return for the year in which you made the donation or the due date (including an extension) for filing the return. In addition, it must include a disclosure of whether the charity provided anything in exchange. If it did, the organization must provide a description and good-faith estimate of the exchanged item or service. You can deduct only the difference between the amount donated and the value of the item or service.
      4. Noncash donations valued at $250 or more and up to $5,000 require still more. You must get a contemporaneous written acknowledgment plus written evidence that supports the item’s acquisition date, cost and fair market value. The written acknowledgment also must include a description of the item.
      5. Noncash donations valued at more than $5,000 are the most complicated. Generally, both a contemporaneous written acknowledgment and a qualified appraisal are required, unless the donation is publicly traded securities. In some cases, additional requirements might apply, so be sure to contact us if you’ve made or are planning to make a substantial noncash donation.

This information presented is for illustrative and informational purposes only. Articles are copyright of the respective publication and not for distribution. FB+D by Cerity Partners is not responsible for and does not endorse content on third party sites.

Recent Publications

A blue textured background with diagonal lines, featuring the white text "CLIENT MEMO" in the bottom right corner.

New Individual Income Tax Return – Engagement Letter, Tax Organizer and Document Request Procedure

Photo of a government building made of stone with columns

January 7th, 2025 Los Angeles Wildfires – Gain Deferral Election on Disaster Events Under IRC § 1033

Two firefighters in protective gear kneel while aiming a hose at a large, intense fire. The scene is dramatic, with bright flames and smoke in the background—an all-too-familiar sight during a Los Angeles County disaster. The firefighters work diligently facing the blaze.

Federal And California Tax Filing And Payment Extensions Due To Los Angeles County Disaster Declaration