There are a number of new tax laws in recent years when it comes to charitable contribution deductions. These are some pretty significant changes, so keep in mind the following as you do your taxes in regard to the cash and non-cash donations you’ve made.
Cash Donations: For cash donations, the big news in 2007 is that deductions will no longer be allowed without receipts. Therefore, tossing cash into the collection plate is no longer a good idea. If you are attached to the collection plate, you could always toss in a check instead. In case of audit, the IRS uses three methods to substantiate charitable deduction:
- Canceled checks
- Credit Card Statement
- Written acknowledgement from