Documentation of Cash Donations

If you make a cash donation under $250 to a charity, then all you need is a cancelled check or bank statement to support your tax deduction. However a donation of $250 or more requires a written acknowledgement from the charity dated prior to the filing date of the return to support the deduction. The acknowledgement letter indicates your tax deductible donation and if you received any goods and services in exchange for the donation which reduces the tax deduction. I like to keep a copy of your acknowledgement letters in your tax file to respond to any IRS audits of your tax return. Deductible charitable contributions also do not include political contributions, cost of raffle tickets, contributions to foreign organizations(except certain Canadian, Mexican, and Israeli charities), payments to nonprofit organizations other than 501(c)(3) organizations, and payments to individuals. If you make recurring payments to a charity under $250, but that total over $250 for the calendar year, the charities are not required to give you an acknowledgement letter which is one reason why I recommend you do lump sum contributions in December of every year.