Send your donors than-you notes. They’ll thank you come tax season.

By Kathleen Stephenson and Lisa Petkun

Employees often make charitable contributions by way of payroll deductions. The amount withheld is treated as a separate contribution to determine if substantiation requirements apply. The same is true if a donor makes regular payments to a charity with a credit card. In both instances, if the separate donations are less than $250, the substantiation rules will not apply.