On the Record: No Substantiation Without Representation

While the responsibility to substantiate a charitable gift is placed on the donor, it behooves organizations to ensure that any acknowledgement meets IRC requirements so the donor can claim the gift as a deduction.

The duty to substantiate
A charitable-contribution deduction is not permitted for any gift of $250 or more unless the donor substantiates it with contemporaneous written acknowledgment by the charity. The substantiation must state:

• the amount of cash and a description of property contributed;

• whether the charity provided any goods or services in exchange for the contribution, plus a good-faith estimate of such goods or services; and

• whether the charity provided any intangible religious benefits in exchange for the contribution.

There is no required format for the contemporaneous written acknowledgment; any sort of statement will suffice as long as the requisite information is included.