IRS Final Regulations Clarify Charitable Contribution Substantiation Requirements

Tax deductions for charitable contributions require the satisfaction of certain substantiation requirements. Generally, any charitable gift of money must be evidenced by either a bank record (a bank statement, electronic fund transfer receipt, cancelled check or credit card statement) or a written communication from the donee organization showing the name of the donee and the date and amount of the gift. The following additional requirements apply, however, to the following gifts:

• For a gift (cash or property) of $250 or more, the donor must obtain a contemporaneous written acknowledgment of the gift by the donee organization (a cancelled check or other evidence of payment will not suffice) that contains (i) the amount of cash contributed (or in the case of property, a description of the property contributed), and (ii) a statement of whether any goods or services were provided in exchange for the gift and, if goods or services were provided, a good faith