New Charitable Donations Rules

New recordkeeping requirements for cash contributions

Beginning in 2007, a taxpayer cannot deduct a cash contribution, regardless of the amount, unless a taxpayer keeps a bank record (such as a canceled check, a bank copy of canceled check, or a bank statement containing the name of the charity, the date, and the amount) or written communication from the qualified organization. The written communication must include the name of the organization, the date of the contribution, and the amount of the contribution.