The rule for not needing a receipt if donation less than 250

Yes, there used to be such a rule. They've changed it, so now you need a receipt for all non-cash donations. I wonder what this means for all those Planet Aid clothing drops. How are you supposed to get a receipt when you just dump clothing in a big box in a parking lot?

-- Barry Margolin, snipped-for-privacy@alum.mit.edu Arlington, MA

*** PLEASE don't copy me on replies, I'll read them in the group ***

You did not find it because it is no longer there. You will need to have a receipt for every donation you have. Missy Doyle

wrote

You've always have been required to have proof (a receipt) of the donation regardless of the dollar amount.

-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net

snipped-for-privacy@gmail.com posted:

Pub 17 for Tax Year 2005 notes that for noncash deductions of less than $250, you "must get and keep a receipt from the charitable organization showing:

1. The name of the charity.
2. The date and location of the contribution, and
3. A reasonably detailed description of the property."

In earlier years, there was a somewhat looser requirement -- though it was always desirable to have a specific list for your own records. Bill

the often-misunderstood $250 rule has not changed. A SINGLE cash donation of more than $250 requires an acknowledgement from the organization (cancelled check is not sufficient). A receipt for non-cash donations has always been required, the new rule is that the donated item, after August 17th (I think) must be in "good" condition. Of course there is an exception; an item in ANY condition that is still worth $500 or more can be claimed, but an appraisal is required. To summarize, all donations now require written proof (date and $ amount) and some donations have a higher standard you must meet.

Publication 526 has this line:

"You are not required to have a receipt where it is impractical to get one (for example, if you leave property at a charity's unattended drop site)."

-- Drew Edmundson, CPA Cary, NC

snipped-for-privacy@gmail.com wrote:

I've looked at the other answers to this post and I believe I know where most of the confusion comes from regarding this $250 clip level. IRS Pub 17 and 526 have and continue to have (2006) a statement under recordkeeping that creates this under $250 clip level for noncash contributions. A receipt or statement from the charity is required unless it is impractical to get one. It actually says that you MUST GET AND KEEP a receipt. These pubs have always been in conflict with the instructions for completing Schedule A. The instructions address this issue in two sections. First off, it states under Contributions You Can Deduct, that if the gift (cash or property) is $250 or more you can only take a deduction if you have a written statement from the charity. One could conclude from this statement alone, that if the gift (cash or property) was under $250, no written statement from the charity would be required. Secondly, under gifts Other Than By Cash or Check, the instructions state that you should keep a receipt or written statement from the charitable organization to whom you gave the gift or have a reliable written record that states to whom you gave the gift, date and location and a description of the property. Please note that this section makes no mention of an absolute requirement to get a receipt. It merely says you need to keep a receipt or have a reliable written record. I have always advised clients to get a receipt for noncash contributions regardless of value. In those instances where they could not get a receipt (Goodwill trailer was closed or Thrift Shop was closed, etc., etc.) and they merely dropped off the items, that they should document the who, what, where and when themselves if the amount was under $250. They should never make a donation in excess of $250 unless they were able to get the receipt. On a separate note, I have also advised clients who get that standard receipt that says "Two Bags of Clothing", to document in writing the actual contents of those bags and attach that statement to the receipt.

All,

DO NOT forget that effective 1/1/7 ANY donation of ANY amount requires a receipt. No more I gave $10 a week into the collection plate. Regards,

Mark

This is not entirely accurate. The new rule, effective Jan

1, 2007, is that for all monetary gifts the donor must maintain a "bank record or a written communication from the donee showing the name of the donee organization, the date of the contribution, and the amount of the contribution". Code section 170(f)(17). A receipt from the recipient organization can be used to fulfill this obligation, but if the donor has some sort of bank record evidencing the gift, the receipt isn't manditory unless the amount of the gift is more than $250. Code section 170(f)(8).

--Chris

A small clarification, the rule is "$250 or more" not "more than $250."

-- Drew Edmundson, CPA Cary, NC

Correct, but I think you missed my point. The individual who tosses a couple of LINCOLNs into the collection plate each week will not have any bank records to document this. Regards,

Mark Rigotti