You Gave From the Heart – Now Keep the Receipt
Generosity is a beautiful thing…and so is a good tax deduction. Whether you donated to your favorite nonprofit, supported a local food bank or parted ways with a bag of lightly used sweaters, every act of giving makes the world a little better. If you’re hoping to see some of that kindness reflected on your tax return, there’s one not-so-glamourous detail you can’t overlook: documentation.
It’s not the most exciting part of giving but it’s the key to making sure your donation does more than warm your heart. Without the right records, the IRS may not allow the donation as a tax deduction. So, keep the receipt and make your generosity count twice: once for the cause, and again at tax time.
For Cash Donations
Under $250? – You’ll need a bank record (check, credit/debit card statement) or a written receipt from the charity.
$250 or more? – You’ll need a written acknowledgment from the organization, stating:
The amount
The date
Whether you got anything in return (like that “free” tote bag or calendar)
Bonus Tip: Email confirmations sent to you by the charity generally count – just don’t delete them in a digital cleaning spree.
For Noncash Donations
Giving gently used items? You can deduct fair market value as long as you have proof. That includes:
A receipt or acknowledgment from the charity
A list (ideally with photos) of what you donated
An appraisal, if you gave something super valuable (think artwork or heirlooms) over $5,000. Bonus Tip: Gifts of appreciated publicly traded stock, where the value is easily determined, don’t require an appraisal.
If the total of all noncash contributions exceeds $500, details for each donation are reported on Form 8283, Noncash Charitable Contributions, so you’ll need to provide me with each receipt, the list of items donated, and the fair market value of the items donated. If you’re struggling to guesstimate the value, google “donation value guide.” Both The Salvation Army and Goodwill have guidelines you can use.
Things You Can’t Deduct
Your time volunteering
Political contributions
Donations to individuals and non-qualified organizations. Be careful of giving through crowdfunding platforms. To confirm whether the entity you’re giving to is a qualified charity, go to IRS.gov (IRS Search for Tax Exempt Organizations).
Final Thought
Charitable giving is one of the most meaningful ways to use your money. But, if you want Uncle Sam to share in your good vibes with a tax deduction, you’ve got to have the proof.
So, yes, keep giving. But also…keep the receipt!