charitable donations for 2007

[crabbypatty]

I remember hearing that you'll need to get proof of all donations, regardless of dolar value for tax year 2007 and beyond. Can anyone confirm this?

How do you plan on approaching this situation? Do you think organizations that previously didn't provide receipts will be prepared to provide them now?

[tabbycat31]

Re: charitable donations for 2007

pay by check or credit card. A cancelled check or credit card statement for a one time donation under $250 is substantial proof.

[sweeps]

Re: charitable donations for 2007

For noncash donations be sure to specifically list what you've donated.

[markusk]

Re: charitable donations for 2007

All organizations I've donated in the past gave me a receipt. This includes a car donated to Volunteers of America 3 years ago, 7 bags of clothes/sweaters to a homeless shelter 2 years ago, and tithing to my church every year.

I am not an expert in tax law, but I do know that a cancelled check to a church (or any religious organization) is NOT proof of a charitable gift. A receipt is required. My church, for example, give an "end-of-year" summary receipt to each person who give donations throughout the year.

[Drumm]

Re: charitable donations for 2007

If you're talking about after-the-fact, you can probably call those you gave to. If they're a decent charitable organization, they'll have a record of your gift, and will be willing to provide you a receipt even if a long time has passed. Believe me, they want to work with people as easily as possible, in order to facilitate people giving in the future.

[kv968]

Re: charitable donations for 2007

I am not an expert in tax law, but I do know that a cancelled check to a church (or any religious organization) is NOT proof of a charitable gift. A receipt is required. My church, for example, give an "end-of-year" summary receipt to each person who give donations throughout the year.

I'm sure a church (or any religious organization) would be willing to give a year-end receipt to those who donate and request one. However if they don't, or you don't want to ask for one, a cancelled check (if paid by check) IS required as a receipt as long as the individual donation isn't over $250.

[crabbypatty]

Re: charitable donations for 2007

Do banks even provide cancelled checks anymore? I haven't gotten one in years.

[catlinye_maker]

Re: charitable donations for 2007

By my understanding, for money gifts under $250, cancelled checks and or credit card statements do count as receipts. Banks will still provide copies of cancelled checks on request, if needed.

The real change in the law is in gifts of goods; the value of the donation needs to be determined by the charity with a receipt, not by the giver. I know that my local charities all used to give blank receipts so that you could fill in your own valuation; they would in fact refuse to give you one with their valuation on it. The local library refused to give anything other than a generic "thank you for donating books" postcard. If I want to claim those donations going forward, I'll need to get them to cough up a receipt showing the value of the donated goods.

[kv968]

Re: charitable donations for 2007

Unless I'm reading this wrong regarding cancelled checks, this is from the IRS website (Publication 17):

"Contributions of Less Than $250
For each cash contribution that is less than $250, you must keep one of the following items.

A canceled check, or a legible and readable account statement that shows:

If payment was by check: the check number, amount, date posted, and to whom paid.

If payment was by electronic funds transfer: the amount, date posted, and to whom paid.

If payment was charged to a credit card: the amount, transaction date, and to whom paid.

A receipt (or a letter or other written communication) from the charitable organization showing the name of the organization, the date of the contribution, and the amount of the contribution.

Other reliable written records that include the information described in (2). Records may be considered reliable if they were made at or near the time of the contribution, and were regularly kept by you, or if, in the case of small donations, you have emblems, buttons, or other tokens that are regularly given to persons making small cash contributions."

[MonkeyMama]

Re: charitable donations for 2007

You will no longer be allowed to report a $1 cash donation even, if you do not have a receipt. A receipt will suffice. That's cash. cancelled checks should also suffice.

They are also stricter on the noncash contributions - must be in good condition, etc. To prove condition, it is suggested to take pictures of any items you donate. I actually have a pile ready to go to Goodwill but I need to empty the bag and snap a picture, seems the easiest way to substantiate further.