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![Note from charity before
taxes filed or due
(1) Amount(s), date(s) &
donor
(2) “No goods or services
were provided in
exchange for these gifts.”
[or describe and value
items provided]](https://image.slidesharecdn.com/documentingcharitablecontributions-101209134721-phpapp01/85/Documenting-Charitable-Contributions-23-320.jpg)
![Notefromcharitybeforetaxes
filedordue
(1) Donoranddate,location&
descriptionofproperty
(2) “Nogoodsorserviceswere
providedinexchangefor
thesegifts.”[ordescribe
andvalueitemsprovided]*
*Part(2)notrequiredforgifts<$250
Donor’s reliable
recordsofgift,charity,
date,place,FMV(and
costbasisifrelevant)](https://image.slidesharecdn.com/documentingcharitablecontributions-101209134721-phpapp01/85/Documenting-Charitable-Contributions-35-320.jpg)
![Notefromcharitybeforetaxes
filedordue
(1) Date,location,and
descriptionofproperty
(2) “Nogoodsorserviceswere
providedinexchangefor
thesegifts.”[ordescribe
andvalueitemsprovided]
Donor’s reliable
recordsofgift,charity,
date,place,FMV(and
costbasisifrelevant)](https://image.slidesharecdn.com/documentingcharitablecontributions-101209134721-phpapp01/85/Documenting-Charitable-Contributions-37-320.jpg)
![Notefromcharitybeforetaxes
filedordue
(1) Date,location,and
descriptionofproperty
(2) “Nogoodsorserviceswere
providedinexchangefor
thesegifts.”[ordescribe
andvalueitemsprovided]
Donor’s reliable
recordsofgift,charity,
date,place,FMV(and
costbasisifrelevant)](https://image.slidesharecdn.com/documentingcharitablecontributions-101209134721-phpapp01/85/Documenting-Charitable-Contributions-39-320.jpg)
![Summary of
qualified
appraisal
attached to
tax return
Notefromcharitybeforetaxes
filedordue
(1) Date,location,and
descriptionofproperty
(2) “Nogoodsorserviceswere
providedinexchangefor
thesegifts.”[ordescribe
andvalueitemsprovided]
Donor’s reliable
recordsofgift,charity,
date,place,FMV(and
costbasisifrelevant)](https://image.slidesharecdn.com/documentingcharitablecontributions-101209134721-phpapp01/85/Documenting-Charitable-Contributions-41-320.jpg)
![Qualified
Appraisal
(attach the
entire appraisal
report to the
tax return)
Notefromcharitybeforetaxes
filedordue
(1) Date,location,and
descriptionofproperty
(2) “Nogoodsorserviceswere
providedinexchangefor
thesegifts.”[ordescribe
andvalueitemsprovided]
Donor’s reliable
recordsofgift,charity,
date,place,FMV(and
costbasisifrelevant)](https://image.slidesharecdn.com/documentingcharitablecontributions-101209134721-phpapp01/85/Documenting-Charitable-Contributions-43-320.jpg)
![Notefromcharitybeforetaxes
filedordue
(1) Date,location,and
descriptionofproperty
(2) “Nogoodsorserviceswere
providedinexchangefor
thesegifts.”[ordescribe
andvalueitemsprovided]
Donor’s reliable
recordsofgift,charity,
date,place,FMV(and
costbasisifrelevant)](https://image.slidesharecdn.com/documentingcharitablecontributions-101209134721-phpapp01/85/Documenting-Charitable-Contributions-44-320.jpg)
Uploaded byRussell James
Documenting Charitable Contributions
The document discusses the documentation requirements for charitable contributions under U.S. tax law. It outlines the different documentation needed based on the amount and type of contribution, including donor records, charity receipts, appraisals and IRS forms. For cash contributions under $250, the donor needs only their own records. For contributions over $500 of property, including non-publicly traded stock and vehicles, the donor needs additional documentation like a qualified appraisal. Failure to follow the documentation rules can result in reduced or disallowed deductions.
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Documenting Charitable Contributions
- 1.
- 2. All slides are takenfrom this book. Available from Amazon.com Full color version available at www.createspace.com/4707238
- 3. If I hitthe target and actually deduct the right amount, is documentation really a big deal?
- 4. Donor gives $80,000 ofnon-publicly traded stock ($3,700 basis) to charity. The required qualified appraisal is NOT completed, but the valuation is correct. Result?
- 5. See Hewitt v.Commissioner, 109 T.C. 258 (1997) Deduction reduced to $3,700 Donor gives $80,000 of non-publicly traded stock ($3,700 basis) to charity. The required qualified appraisal is NOT completed, but the valuation is correct. Result?
- 6. Donor gives $435,000 of equipmentto public charity, but appraisal reports and receipts omit required information. Later, to prepare for the audit, donor gets qualified appraisals. Result?
- 7. No deduction + 20%penalty for underpayment of taxes See Friedman v. Commissioner, T.C. Memo 2010-45 Donor gives $435,000 of equipment to public charity, but appraisal reports and receipts omit required information. Later, to prepare for the audit, donor gets qualified appraisals. Result?
- 8. KNOW the rules and FOLLOWthe rules!
- 9. Cash < $250 Property<$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Cash $250+ As the opportunities for serious abuse increase, so do gift documentation requirements
- 10. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? How?…did you value it? Summary of Qualified Appraisal IRS Form 8283 Cash $250+ IRS Form 1098-C
- 11. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal IRS Form Cash $250+ or How?…did you value it?
- 12. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal IRS Form Cash $250+ How?…did you value it?
- 13. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal IRS Form Cash $250+ How?…did you value it?
- 14. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal IRS Form Cash $250+ How?…did you value it?
- 15. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal IRS Form Cash $250+ How?…did you value it?
- 16. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? How?…did you value it? Summary of Qualified Appraisal IRS Form 8283 Cash $250+ IRS Form 1098-C
- 17. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal IRS Form Cash $250+ How?…did you value it?
- 18. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal IRS Form Cash $250+ How?…did you value it?
- 19. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? How?…did you value it? Summary of Qualified Appraisal IRS Form 8283 Cash $250+ IRS Form 1098-C
- 20. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal IRS Form Cash $250+ or How?…did you value it?
- 21. Note from charitybefore taxes filed or due (1) Amount(s), date(s) & donor Credit Card Statement Charity 210.00 Two Hundred and No/100 A. DonorGift
- 22. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal IRS Form Cash $250+ How?…did you value it?
- 23. Note from charitybefore taxes filed or due (1) Amount(s), date(s) & donor (2) “No goods or services were provided in exchange for these gifts.” [or describe and value items provided]
- 24. Charity 210.00 TwoHundredTenandNo/100 A. DonorGift Charity240.00 TwoHundredFortyandNo/100 A. DonorGift Charity 230.00 TwoHundredThirtyandNo/100 A. DonorGift
- 25.
- 26. I give through payrolldeduction at work to a united appeal, so, there isn’t a specific charity to get a receipt from. How do I substantiate?
- 27. If any singlegift is $250+, use a pledge card indicating no goods or services are given in exchange, and the W-2 or paystub to substantiate
- 28.
- 29. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal IRS Form Cash $250+ How?…did you value it?
- 30.
- 31.
- 32. For property giftsunder $250, a receipt is not required where it is impractical
- 33.
- 34. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal IRS Form Cash $250+ How?…did you value it?
- 35. Notefromcharitybeforetaxes filedordue (1) Donoranddate,location& descriptionofproperty (2) “Nogoodsorserviceswere providedinexchangefor thesegifts.”[ordescribe andvalueitemsprovided]* *Part(2)notrequiredforgifts<$250 Donor’sreliable recordsofgift,charity, date,place,FMV(and costbasisifrelevant)
- 36. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal Cash $250+ How?…did you value it? IRS Form 8283
- 37. Notefromcharitybeforetaxes filedordue (1) Date,location,and descriptionofproperty (2) “Nogoodsorserviceswere providedinexchangefor thesegifts.”[ordescribe andvalueitemsprovided] Donor’sreliable recordsofgift,charity, date,place,FMV(and costbasisifrelevant)
- 38. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? How?…did you value it? Summary of Qualified Appraisal IRS Form 8283 Cash $250+ IRS Form 1098-C
- 39. Notefromcharitybeforetaxes filedordue (1) Date,location,and descriptionofproperty (2) “Nogoodsorserviceswere providedinexchangefor thesegifts.”[ordescribe andvalueitemsprovided] Donor’sreliable recordsofgift,charity, date,place,FMV(and costbasisifrelevant)
- 40. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal IRS Form Cash $250+ How?…did you value it?
- 41. Summary of qualified appraisal attached to taxreturn Notefromcharitybeforetaxes filedordue (1) Date,location,and descriptionofproperty (2) “Nogoodsorserviceswere providedinexchangefor thesegifts.”[ordescribe andvalueitemsprovided] Donor’s reliable recordsofgift,charity, date,place,FMV(and costbasisifrelevant)
- 42. Donor Records Charity Statement CharityStatement Qualified Appraisal Cash < $250 Property <$250 Property $250-$500 Property >$500 Property $5,000+ except publicly traded securities Property >$500,000 Artwork >$20,000 except publicly traded securities Donor Records Why?…did you give? quid pro quo? Who? What? When? Where? Summary of Qualified Appraisal IRS Form Cash $250+ How?…did you value it?
- 43. Qualified Appraisal (attach the entire appraisal reportto the tax return) Notefromcharitybeforetaxes filedordue (1) Date,location,and descriptionofproperty (2) “Nogoodsorserviceswere providedinexchangefor thesegifts.”[ordescribe andvalueitemsprovided] Donor’s reliable recordsofgift,charity, date,place,FMV(and costbasisifrelevant)
- 44. Notefromcharitybeforetaxes filedordue (1) Date,location,and descriptionofproperty (2) “Nogoodsorserviceswere providedinexchangefor thesegifts.”[ordescribe andvalueitemsprovided] Donor’sreliable recordsofgift,charity, date,place,FMV(and costbasisifrelevant)
- 45. Charities need notreport quid pro quo information for gifts of $75 or less. Donors need not consider quid pro quo benefits •Item value does not exceed 2% of the donation or $101* •Item cost ≤$10.10* and gift $50.50* + *adjusted annually for inflation (2013) De minimus
- 46.
- 47. Help me HERE convince mybosses that continuing to build and post these slide sets is not a waste of time. If you work for a nonprofit or advise donors and you reviewed these slides, please let me know by clicking
- 48. If you clickedon the link to let me know you reviewed these slides… Thank You!
- 49. This slide setis from the curriculum for the Graduate Certificate in Charitable Financial Planning at Texas Tech University, home to the nation’s largest graduate program in personal financial planning. To find out more about the online Graduate Certificate in Charitable Financial Planning go to www.EncourageGenerosity.com To find out more about the M.S. or Ph.D. in personal financial planning at Texas Tech University, go to www.depts.ttu.edu/pfp/ Graduate Studies in Charitable Financial Planning at Texas Tech University