Make Sure Your Charitable Contributions Documentation Is Sufficient

Charitable organizations frequently depend on donations from the public to pursue their mission, and, although there are many altruistic reasons people give, it is largely acknowledged that the federal tax deduction for charitable contributions is a significant incentive. Earlier this year, the Tax Court highlighted how an apparently slight oversight in documentation can upend the interdependent relationship between donee and donor.

Sec. 170 provides for the broad deductibility of charitable donations, subject to certain substantiation requirements. Earlier this year, these substantiation requirements were at the heart of the dispute in Durden, T.C. Memo. 2012-140.