8058 / What verification is required to substantiate a deduction for a charitable contribution of money? What enhanced recordkeeping requirements apply for contributions of money?
A charitable contribution is allowable as a deduction only if verified as required under regulations.1
A charitable deduction is not allowed for any contribution of a check, cash, or other monetary gift unless the donor retains a bank record or a written communication from the charity showing the name of the charity and the date and the amount of the contribution.2
The IRS has issued guidance on how charitable contributions made by payroll deduction may meet the requirements of IRC Section 170(f)(17). The Service clarified that unlike IRC Section 170(g)(8), which only applies to contributions of $250 or more (see Q 8059), IRC Section 170(f)(17) applies to any contribution of a cash, check, or other monetary gift. For a charitable contribution made by payroll deduction, a pay stub, Form W, or other employer-furnished document that sets forth the amount withheld for payment to a donee organization, along with a pledge card prepared by or at the direction of the donee organization, will be deemed to be a written communication from the donee organization for this purpose.3