Substantiation is a Requirement to Deduct a Charitable Contribution

Richard Sills is a Partner in our Washington, D.C. office

Donors must receive acknowledgment letters from charitable organizations in order to deduct contributions of $250 or more. See IRS Publication 1771.

Organized charities typically provide prompt written acknowledgments of donors' contributions. It is good donor relations to do so. But what happens when a taxpayer sits down at his kitchen table in December to write a big check to his own private foundation, of which he is President? The foundation deposits the check in its account. Does the taxpayer then write a thank-you letter to himself, on behalf of his foundation? Under the law, he must, in order to deduct his contribution.