Good news for charitable donors!

Cathy Robinson, CPA

Principal

robinson@hwco.com

 

The IRS has withdrawn proposed regulations regarding the reporting of donor information.  The proposed regulations would have allowed charities to file information returns about donors instead of providing written acknowledgements to the donors.   The problem with filing of information returns would have required obtaining the social security number of donors.  Some charities felt that asking for a social security number would discourage potential donors.  In addition, other charities were worried about identity theft.

 

Therefore, you must obtain written acknowledgement from the charity for a donation over $250 and save it for your tax preparer.

What Documentation Do I Need for a Charitable Contribution Deduction?

 

Cathy Robinson, CPA

Senior Manager

robinson@hwco.com

You have made your charitable contributions during the year, now it is time to gather them for your tax return preparation.  What documents do you need to retain?

The IRS requires the donor maintain either a bank record or a receipt from the donee with the donee’s name, contribution date and amount for a cash donation.

 

For a payroll donation, the donor should retain the pay stub or documentation for the amount withheld with payment to the charitable organization. 

For a noncash donation of less than $250, the donor should maintain a receipt from the donee with the name, date, and a description of the items donated.  The donee will not provide a value of the donated property.

For contributions of $250 or more, the donor should maintain the written acknowledgment from the donee.  The following items should be included in the acknowledgment:  amount of cash or property description and a value of the goods or services exchanged for the contribution.

For noncash contributions of more than $500, the donor must list on their tax return a written description of the donated property and any other information required by the IRS.  If the donation is a vehicle, there are additional reporting requirements.  If there is a noncash donation of $5,000 or more, a qualified appraisal must be attached to the return.

When in doubt of what is required, contact your tax preparer with any questions. 

HW&Co. Volunteering

With the holidays upon us, more and more people choose to spend their time volunteering.

At HW&Co. our staff has spent most of the year donating their time and their efforts to donating to good causes.

Our most recent three include:

1) Toys for Tots

 

 

 

2) FETCH

 

3)Walk for Alzheimers

 

 

 

 

Honorable Mention:

 

The financial advisors from our affiliate, HWFA, also donated their time to volunteering at the Cleveland Foodbank.

 

 

(Picture of our group volunteering in 2014)

 

 

 

When you work for a company that is so adamant about donating their time and their efforts towards it makes you feel good about the people you work for and what you're doing.

You can also check out just a few organizations we have recently donated to:

Cleveland Kidney Foundation Gala

Milesstones Autism Resources

SPACES

Extended Housing