Why careful recordkeeping matters
Donors who want to claim charitable deductions must back them up with proper documentation. The IRS enforces substantiation rules that vary by donation type and amount. Without the right records, deductions can be reduced or disallowed during an audit. In my practice advising donors and small-business owners, I’ve seen otherwise legitimate deductions rejected simply because a required acknowledgment or appraisal was missing.
Authoritative guidance appears in IRS Publication 526 (Charitable Contributions) and Publication 561 (Determining the Value of Donated Property); follow those publications for detailed rules (IRS Pub. 526, IRS Pub. 561). When noncash donations exceed thresholds, taxpayers also use Form 8283 and sometimes a qualified appraisal (see Form 8283 instructions).
Quick rules summary (by donation type)
- Cash contributions under $250: canceled check, bank record, or credit-card receipt is usually sufficient. The IRS requires a written acknowledgment from the charity if a single donation is $250 or more (IRS Pub. 526).
- Cash contributions $250 or more: obtain and keep a contemporaneous written acknowledgment from the charity that states the amount donated, the date, and whether any goods or services were provided in return.
- Payroll deductions: keep paystub/annual pay summary showing the employer’s withholding and a year-end statement from the charitable organization or employer.
- Noncash property under $250: receipt or acknowledgment from the charity describing the items and their condition.
- Noncash property more than $500: complete Section A of Form 8283 and keep it with your tax files (Form 8283 instructions).
- Noncash property over $5,000: generally requires a qualified appraisal and completion of Section B of Form 8283; attach the appraisal summary to your return (IRS Pub. 561; Form 8283 instructions).
- Vehicle donations: specific substantiation rules apply. If the charity sells the vehicle, your deductible amount is limited to the gross proceeds reported on Form 1098-C or a similar written acknowledgment. If the charity uses the vehicle in its mission or materially improves it, you may be able to deduct the fair market value — but you must get the proper written acknowledgment (IRS Pub. 526 and Form 1098-C guidance).
What the IRS expects in a written acknowledgment (for $250+ gifts)
A contemporaneous written acknowledgment from the donee organization should include:
- The name of the organization.
- The amount of cash contributed and the date.
- A description (but not value) of any noncash property donated.
- A statement whether the charity provided any goods or services in return, and a good faith estimate of the value of those goods/services. If none were provided, the statement should say so.
Keep this acknowledgment with your tax records. “Contemporaneous” means before you file your tax return — and no later than the due date of the return (including extensions) for the year you claim the deduction.
Valuation: how to support the fair market value (FMV) claim
The deductible amount for donated property is generally the property’s fair market value at the time of donation. FMV is the price a willing buyer and seller would agree to in an arm’s-length transaction.
Recordkeeping items to support FMV:
- A clear, dated description of the item(s) and their condition.
- Photos for high-value tangible items (art, furniture, vehicles).
- Market comparables (sales listings, auction results, dealer quotes) especially for antiques, art, and collectibles.
- A qualified written appraisal when the claimed deduction for an item or group of similar items exceeds $5,000 (except some publicly traded securities and certain other exceptions). The appraisal must meet IRS definition of qualified appraisal; retain the signed appraisal statement and the appraiser’s qualifications (IRS Pub. 561; Form 8283 instructions).
In many client situations I’ve recommended getting an appraisal before you donate, not after. Appraisals dated after the donation can be questioned.
Forms and documents you should retain
- Cash donation evidence: canceled checks, bank or credit-card statements, or receipts.
- Charitable organization written acknowledgments (for gifts of $250+).
- Form 8283 (Noncash Charitable Contributions) if required; keep a copy attached to your return and any related appraisals.
- Qualified appraisals and the appraiser’s credentials.
- Form 1098-C or written acknowledgment for vehicle donations (and any correspondence showing how the charity used or sold the vehicle).
- Photographs, repair estimates, or market listings for tangible personal property.
- Year-end summary from donor-advised funds, foundations, or community foundations when gifts are routed through intermediaries.
Best-practice folder and digital workflow
Create a consistent recordkeeping routine you can follow year after year. I recommend the following steps:
- At the time of donation, save the electronic receipt and the charity’s confirmation email to a dedicated folder labeled by tax year (e.g., Donations_2025).
- For cash gifts, store bank or credit-card records that show the date and amount.
- For every $250+ gift, scan or save the charity acknowledgment in PDF format and note whether any goods/services were provided.
- For noncash gifts, photograph items, note condition, and save market evidence (receipts, online listings).
- If an appraisal is needed, keep the original signed appraisal and attach the Form 8283 copy to your annual tax package.
- Back up digital files to a secure cloud folder and keep one offline copy for redundancy.
This organized approach saves time during tax preparation, supports audit readiness, and reduces stress in my clients’ lives.
Common mistakes to avoid
- Claiming the fair market value without contemporaneous evidence (photos, comparables, or appraisal).
- Waiting until tax time to request a written acknowledgment from the charity. If you need the $250+ acknowledgment, get it at the time of the gift.
- Forgetting Form 8283 for noncash gifts over $500.
- Overlooking special rules for vehicle donations and relying on a casual receipt instead of Form 1098-C or the required charity statement.
- Discarding documentation too early. While the typical statute of limitations is three years, there are circumstances (e.g., substantial omission of income) that extend it to six years, and no time limit for fraudulent returns.
How long should you keep records?
The IRS’s general rule is to keep records until the period of limitations for audit runs out. Common guidance:
- Keep donation records at least three years from the date you filed the return on which you claimed the deduction.
- If you omitted more than 25% of your gross income on a return, the IRS can go back six years — keep records for at least six years in those situations.
- Keep appraisal documentation, Form 8283, and records for property claims for at least six years, and indefinitely if fraud is suspected.
When in doubt, retain the documents for seven years — that balances practicality with risk management.
Practical examples from practice
- Case: a donor gave a collection of rare books and claimed $12,000. Because they had no qualified appraisal or Form 8283 Section B, the deduction was disallowed. Lesson: arrange the appraisal before donation and file the proper forms.
- Case: a client donated a car and received a simple receipt. The charity sold the car and issued Form 1098-C reporting $800 in proceeds — the client’s deductible amount was limited to $800, not the client’s estimate of $2,000.
Where to read the rules and get forms
- IRS Publication 526, Charitable Contributions: https://www.irs.gov/pub/irs-pdf/p526.pdf
- IRS Publication 561, Determining the Value of Donated Property: https://www.irs.gov/pub/irs-pdf/p561.pdf
- Form 8283, Noncash Charitable Contributions: https://www.irs.gov/forms-pubs/about-form-8283
- Guidance on vehicle donations (Form 1098-C) in IRS resources and Pub. 526.
Related resources on FinHelp.io
- See our guide on Documenting Charitable Contributions: Receipts, Substantiation, and IRS Rules for procedural checklists and sample acknowledgments.
- For donated goods, read How to Track Charitable Deductions When Donating Goods for itemized tracking templates and valuation tips.
Final practical checklist
- Save bank/credit-card records for cash gifts.
- Get written acknowledgments for gifts of $250 or more.
- Complete Form 8283 and obtain qualified appraisals when required (> $5,000 rules).
- For vehicle donations, keep Form 1098-C or charity statement showing proceeds or use.
- Keep all records at least three to six years, and longer when valuations or large claims are involved.
Professional disclaimer: This article is for educational purposes and does not replace personalized tax advice. For questions about a particular donation, I recommend consulting a CPA or tax attorney who can evaluate your situation and the latest IRS guidance.
Authoritative references: IRS Publication 526; IRS Publication 561; Form 8283 instructions (IRS.gov).
