CMS Contributions - IRS Charitable Contributions Substantiation and Disclosure Requirements

The Internal Revenue Service requires that churches, charities and non-profit organizations substantiate and disclose the receipt of charitable contributions that are cash or property, to or for the use of a qualified organization.

Substantiation of Contributions
A donor can deduct a charitable contribution of $250 or more only if the donor has a written acknowledgment from the charitable organization. The donor must get the acknowledgement by the earlier of:

  1.  The date the donor files the original return for the year the contribution is made,

        or
  2.    The due date, including extensions, for filing the return.

The donor is responsible for requesting and obtaining the written acknowledgement from the donee.

The written acknowledgment required to substantiate a charitable contribution of $250 or more must contain the following information:

  • Name of the organization;
  • Amount of cash contribution;
  • Description (but not value) of non-cash contribution;
  • Statement that no goods or services were provided by the organization, if that is the case;
  • Description and good faith estimate of the value of goods or services, if any, that organization provided in return for the contribution; and
  • Statement that goods or services, if any, that the organization provided in return for the contribution consisted entirely of intangible religious benefits, if that was the case.

For complete information, go to the IRS web site http://www.irs.gov/charities/charitable/article/0,,id=123211,00.html.

 

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