Noncash Charitable Contributions Must Be Properly Substantiated

Givers who make contributions of property (noncash donations) in a given tax year may a receive a tax deduction equal to the fair market value of the property at the time of the contribution. However, it is important for givers to be receipted for donated noncash gift items for substantiation purposes. According to the Income Tax Regulations, Section 1.170A-13(b)(1), taxpayers are required to substantiate each noncash contribution with a receipt from the donee organization unless doing so is impractical. The receipt must contain:

  • The name of the organization
  • The date and location of the contribution
  • A description of the property in detail reasonably sufficient under the circumstances

It is also important to state on the receipt that no goods or services were provided in exchange for the gift. Organizations should not, however, include on the receipt any dollar value for the gift. Valuation of the property is the responsibility of the giver.

To see a sample of a noncash charitable gift acknowledgment, click here.

This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.


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