Charitable Contribution Substantiation refers to the documentation required by the Internal Revenue Service (IRS) to verify donations made to qualified charitable organizations for tax deduction purposes.
When taxpayers claim a deduction for charitable contributions, they must provide proof of the donation. This documentation typically includes receipts, bank statements, or written communication from the charity that indicates the amount donated and whether any goods or services were received in exchange for the contribution.
For contributions of $250 or more, the IRS mandates a written acknowledgment from the charity that includes the amount donated and a statement regarding any benefits received by the donor. For contributions less than $250, taxpayers may use a bank record or a receipt from the charity but should still maintain a record of the donation. Proper substantiation is essential to ensure the taxpayer can support their deductions in case of an audit.
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