Charitable Contributions – Substantiation and Disclosure Requirements
There are record-keeping and substantiation rules imposed on donors of charitable contributions and disclosure rules imposed on charities that receive certain quid pro quo contributions.
– a donor must have a bank record or written communication from a charity for any monetary contribution before the donor can claim a charitiable contribution on his/her federal income tax return
-a donor is responsible for obtaining a written acknowledgment from a charity for any single contribution of $250 or more before the donor can claim a charitable contribution on his/her federal income tax return
-a charitable organization is required to provide a written disclosure to a donor who receives goods or services in exchange for a single payment in excess of $75.
If you itemized your deductions (file federal schedule A of Form 1040), charitable contributions may reduce your tax liability. Contributions to qualified organizations must be made by December 31, 2010.
