Question

Which of the following statements is correct regarding the required substantiation for the deduction of charitable contributions?

A cash contribution of less than $250 can be substantiated by the taxpayers entry in a notebook prepared at the time of the contribution.
Required substantiation must be obtained within thirty days of the contribution to meet the contemporaneous requirement.

The acknowledgement for a contribution in excess of $250 must contain either an estimate of the value of goods or services provided or a statement that no such goods or services were provided.

The acknowledged may not be sent to the taxpayer via mail.

Answer 1

Proof of charitable contributions refers to the substantiation required by the Internal Revenue Service (IRS) for a taxpayer to claim a donation of money, property or financial assets as an itemizable federal income tax deduction.

Proof of charitable contributions can differ depending on how much has been contributed. According to the IRS, acceptable forms of proof include bank statements, payroll deduction records and written statements from the recipient charity containing the charity’s name, contribution date and contribution amount. For contributions of $250 or more, the charity must also specify whether it provided the donor with any goods or services in exchange for the gift.

The following statement is correct :

The acknowledgement for a contribution in excess of $250 must contain either an estimate of the value of goods or services provided or a statement that no such goods or services were provided.

The acknowledged may not be sent to the taxpayer via mail.