 Helpful Articles
from David Vollrath,
Union County Foundation Executive Director
The Foundation encourages you to work closely with your professional advisor(s)
as you develop your estate plan and consider your present and future charitable goals. |
Proper Receipting of Charitable Gifts
(Part of a series of articles on charitable giving and the Union County Foundation
by David Vollrath - Exec. Dir.)
Missouri is known as the “show me” state. One could argue that the IRS should adopt
that same slogan. The IRS has specific requirements regarding the proof needed to support claiming a charitable
deduction on an income tax return. Some items are obvious, such as keeping cancelled checks for gifts made to charity.
Charitable gifts that exceed $250 require more than a cancelled check. Such gifts require an actual receipt from
the receiving charity. This receipt must be received by the donor prior to the due date of his/her tax return,
including any time extensions. The receipt must indicate whether the gift was cash or property, the amount of the
gift, and the value of any goods or services that have been received. The reason for declaring the value of any
goods or services received back is to establish if the gift is fully deductible. Generally the value of goods received
back must be deducted from the total gift amount. For example, if you gift $250 and receive back goods valued at
$100 your allowed deduction is only $150.
There are two exceptions to the “value back from charity” rule. The first is for minor
mementos or “premiums” of minimal value received by the donor from the charity. The second is for an “intangible
religious benefit.” For example, admission to a religious ceremony is an intangible religious benefit.
If you give property to a charity your records should include the name of the charity, the date and city where
the gift was made and a description of the property. You should also record the fair market value and the method
used to determine that value. If the value of the donated property exceeds $500 then an IRS form 8283 for “noncash
charitable contributions” is to be filed with your tax return. This form includes information such as how you acquired
the property, what you paid for the property, and how long you have held the property. You should always consult
a tax professional if you have questions.
All the above rules are really pretty easy to follow and by doing so you can be assured of receiving the full tax
benefit of your gifts....and if the IRS says “show me”, like a good Missourian, you will be able to do so.
The Union County Foundation encourages you to consider your present and future charitable goals. The Foundation
is equipped to help you achieve these goals by providing: planned giving and estate planning resource information,
charitable gift annuities/life income plans, and a broad array of charitable choices. Please call us at 937-642-9618,
email us, reference our website, or stop by our Marysville office at 126 N. Main St. We are committed to helping
you.... “preserve your footprint in time.” |
|
|
