Noncash Contributions

Noncash charitable contributions are subject to slightly different IRS rules from cash charitable contributions. All noncash contributions must have records if any tax deductions will be claimed regardless of the size of the noncash contributions.

Noncash charitable contributions can be:

• less than $250
• at least $250 but no more than $500
• over $500 but no more than $5,000 or
• over $5,000

Different levels of noncash charitable contributions earn the taxpayer who donates the noncash contributions different amounts of tax deductions.

I make multiple noncash contributions, do I consider them separately?

Unlike cash charitable contributions, when donating noncash contributions, taxpayers must combine the claimed tax deductions of all similar items of the properties donated during the year.

Noncash contributions for tax deductions of less than $250

When making noncash donations, the donor must keep record such as a receipt or a letter of acknowledgement from the charitable organization showing:

• the name of the charitable organization,
• the date and location of the charitable contribution, and
• a reasonably detailed description of the property donated.

Do I always need a receipt to claim any tax deductions from noncash charitable contributions?

Sometimes, donations are made at drop boxes. In these situations, the taxpayers are not required to get a receipt from the charity.

Noncash contributions for tax deductions of between $250 and $500

Separate acknowledgement from each qualified charitable organization is required for a taxpayer to claim any tax deductions resulting from noncash charitable contributions of between $250 and $500. The acknowledgement must:

• be written
• include
  • a description of the noncash property donated (not necessary the value)
  • whether the qualified organization gave the donor any goods or services in exchange
  • a description and good faith estimate of the value of the good or services given to the donor.
• be in the donor's possession on or before the earlier of:
  • the date the taxpayer files his or her tax return for the year the noncash contributions were made, or
  • the due date including extensions for filing the tax return