How to Keep Good Records for Charitable Donations

When you make charitable donations, a good portion of the value is tax deductible, which is why it's a good idea to keep good records. If it comes time for taxes and you don't know where you've put receipts for charitable donations, you might be paying the IRS more than you're supposed to. Following is a guide to keeping all of those records straight regardless of what you donate.

Monetary Donations

When you make charitable donations in the form of cash, check or money order, the most important thing is knowing the amount of the gift. Donations of less than $250, regardless of where the donations go, are different from those amounting to more than $250. Remember, however, that each separate gift is determine separately; if you write two checks for $200 each, they are counted in the former category.

For charitable donations of less than $250, you'll want to save proof that you paid out that money and to whom the check or money order was written, as well as a receipt from the organization that matches your records. These should be kept in a secure location, such as an envelope or accordion folder, for this year's taxes. If you don't have the canceled check, a copy of your bank statement should suffice.

If the charitable donation is more than $250, you'll need a signed and dated authorization from the organization that states the amount you donated and whether you received anything in return. It is best to keep the records mentioned for donations of less than $250, but make sure all records are kept together to eliminate confusion. These types of proof must be submitted by the date you file your tax return, so make sure you can find them when it comes time to file.

Before you send anything to the IRS, make sure you've made several copies of each document, and put them in a safe place in case you need to retrieve them later. Unfortunately, our humble government is not perfect, and papers are lost all the time. Never send in the originals of your records or risk losing them forever.

Non-Monetary Donations