
Proof of Charitable Contributions
Proof of charitable contributions refers to the substantiation required by the Internal Revenue Service (IRA) for a taxpayer to claim a donation of money, property, or financial assets as an itemizable federal income tax deduction. The standard deduction is the amount taxpayers can subtract from income if they don’t list itemized write-offs for mortgage interest, charitable donations, and state taxes, among others, on Schedule A. A filer’s itemized deductions now need to be greater than the new standard deductions for the filer to benefit from listing deductions separately. Proof of charitable contributions refers to the substantiation required by the Internal Revenue Service (IRA) for a taxpayer to claim a donation of money, property, or financial assets as an itemizable federal income tax deduction. 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 Proof can be provided in the form of an official receipt or invoice from the receiving charitable organization, but can also be provided via credit card statements or other financial records detailing the donation.

What Is Proof of Charitable Contributions?
Proof of charitable contributions refers to the substantiation required by the Internal Revenue Service (IRA) for a taxpayer to claim a donation of money, property, or financial assets as an itemizable federal income tax deduction. Proof can be provided in the form of an official receipt or invoice from the receiving charitable organization, but can also be provided via credit card statements or other financial records detailing the donation.



Understanding Proof of Charitable Contributions
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.
Taxpayers claiming a deduction for more than $500 in non-cash contributions must also fill out IRS Form 8283 and file it with their annual tax return. In addition, the IRS requires an independent substantiation of value, such as an appraisal, for non-cash donations exceeding $5,000. Taxpayers can consult IRS publication 561 to help determine the value of the donated property.
Recent Tax Laws and Charitable Donations
The Tax Cuts and Jobs Act (TCJA) of 2017 nearly doubled standard deductions. For single filers, the standard deduction is $12,400 in 2020 and $12,550 in 2021. For married couples filing jointly, the standard deduction is $24,800 in 2020 and $25,100 in 2021. The standard deduction is the amount taxpayers can subtract from income if they don’t list itemized write-offs for mortgage interest, charitable donations, and state taxes, among others, on Schedule A.
A filer’s itemized deductions now need to be greater than the new standard deductions for the filer to benefit from listing deductions separately. However, charitable donors still interested in receiving a tax break have options. One would be to bunch donations every few years to top the higher standard deduction and itemize their return, say, every other year.
Donor-advised funds could be an avenue for charitable donations as well. These funds allow donors to bunch smaller gifts into one large amount and take a deduction in the year of the gift. The donor then has the ability to designate charities as recipients at a later date. In the meantime, the assets can be invested and grow tax-free. It's worth noting that donor-advised accounts have fees.
Another option for donors targets those who are 70½ years and older. These filers can utilize their individual retirement accounts (IRA) to make charitable donations up to $100,000.
Related terms:
Form 1040: U.S. Individual Tax Return
Form 1040 is the standard U.S. individual tax return form that taxpayers use to file their annual income tax returns with the IRS. read more
501(c)(3) Organization
A 501(c)(3) organization is a tax-exempt non-profit organization. Learn the requirements, costs, and pros and cons of setting up a 501(c)(3). read more
Charitable Contributions Deduction
Within certain limitations, the Charitable Contributions Deduction allows taxpayers to deduct their cash and property contributions to qualified charities. read more
Charitable Gift Annuity
A charitable gift annuity is an arrangement for a series of income payments for life, to be paid to an individual in return for a donation of assets. read more
Charitable Donation
A charitable donation is a gift of cash or property to a non-profit organization. American taxpayers can deduct such donations up to an annual cap. read more
Donor-Advised Fund
A donor-advised fund is a private fund administered by a third party, created for managing charitable donations on behalf of an organization, family, or individual. read more
Federal Income Tax
In the U.S., the federal income tax is the tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities. read more
Form 8283: Noncash Charitable Contributions Explanation
Form 8283: Noncash Charitable Contributions is a tax form distributed by the IRS and is used by filers who wish to deduct noncash contributions made to a qualifying charitable organization. read more
Individual Retirement Account (IRA)
An individual retirement account (IRA) is a savings plan with tax advantages that individuals can use to invest for retirement. read more
IRS Publication 561
IRS Publication 561 provides information on how to determine the fair market value for charitable contributions that a taxpayer may wish to deduct. read more