Cash Charitable Contribution

Special rules for charitable contributions apply to cash charitable contributions. When donating cash to a charity or a church, strict records must be kept to prove the amount of the cash charitable contribution made.

When do I need a receipt for my cash charitable contribution?

According to the IRS tax rules, a charitable organization must give the person donating a written statement if it receives a payment that is more than $75 that is partly a charitable contribution for goods or services.

What is a cash charitable contribution?

Cash charitable contributions include:

• cash,
• check
• electronic funds transfer
• credit card
• payroll deduction

What to do to deduct a cash charitable contribution? In order for a taxpayer who donates cash to charities or churches to deduct his or her cash charitable contribution, he or she needs to keep one of the following records of the cash charitable contribution. Record keeping is very important when deducting cash charitable contributions.

1) a bank record that shows:

• the name of the qualified organization
• the date of the cash charitable contribution
• the amount of the cash charitable contribution

What are the bank record needed to deduct a cash charitable contribution?

• a canceled check
• a bank or credit union statement or
• a credit card statement

2) a receipt, a letter or other written evidence from the qualified organization the taxpayer donated cash charitable contribution to showing:

• the name of the qualified organization,
• the date of the cash charitable contribution, and
• the amount of the cash charitable contribution

3) the payroll deduction records.

If a taxpayer makes a cash charitable contribution by way of payroll deduction, he or she must keep the following records in order to deduct the cash charitable contribution. i) A pay stub, Form W-2, or other document furnished by your employer that shows: the date of the cash donation the amount of the cash donation

ii) A pledge card or other document prepared by or for the qualified charity that shows:

• the name of the organization

Other rules for cash charitable contributions apply for donations of $250 or more.