Complying with the Contemporaneous Written Acknowledgement Requirement for Charitable Gifts

I previously blogged about Jan Van Dusen, a family attorney from Oakland, California who claimed a deduction of $12,068 for foster cat expenses. The Tax Court determined that a majority of Van Dusen’s expenses related to helping foster cats through Fix Our Ferals, a qualified Sec. 501(c)(3) organization, did qualify because both the relationship and substantial compliance tests were met. The Court noted that because Van Dusen did not have a Sec. 170(f)(8)(a) contemporaneous written acknowledgement, however, the gifts of $250 or more were not deductible.

Typcially, charities will create a standard receipt to comply with Sec.170 (f)(8) that they issue with a “no goods or services provided” statement. However, larger charitable organizations should consider creating a more comprehensive receipt for unreimbursed expenses that describes the four part relationship test and the three part contemporaneous written acknowledgement requirement.  

When May Charities Give a Receipt for Expenses?, Giftlaw.com, Feb. 22, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.