The IRS has issued guidance concerning how charitable contributions made by payroll deductions must meet the recordkeeping requirements. As you have made charitable contributions in the past, we felt that you should be aware of these requirements.
Generally, taxpayers claiming a charitable contribution deduction for cash, check, or another monetary gift must substantiate their deduction with adequate documentation. This means that a taxpayer must maintain a bank record or written communication from the donee showing the name of the donee organization, the date of the contribution and the amount of the contribution.
If your charitable contribution is made through a payroll deduction, the requirements are satisfied if you retain a pay stub, Form W-2, or other document furnished by your employer that indicates the amount withheld. Also, you should retain the pledge card or other document prepared by the organization that shows the name of the donee organization.
For contributions that are $250 or more made by a payroll deduction, the pledge card or other document must include a statement to the effect that the organization did not provide goods or other services in consideration of any contribution.
If you have any questions about this guidance or if you would like to discuss charitable gift planning, please call our office at your earliest convenience.