What options can a donor use to substantiate the charitable donation?
Donors have two options to substantiate charitable contributions for tax purposes: 1.) Both a Form W-2 or official employer document showing the charitable withholding AND one of these: an original pledge card, carbon copy of a pledge card, photocopy of a pledge card, tear-off receipt from a pledge card, or official letter acknowledging the donation from or by the direction of a charitable organization. The amount acknowledged from the charity must be identical to the amount deducted on the employee’s Form W-2 OR 2.) A cancelled check or other official bank record. If donors follow IRS Notice 2006-110 and provide the above documentation, they will definitely be com plying with the law (considered “safe harbor”). If the above is not followed, donors still may be able to deduct their charitable contributions but should consult their tax advisor.
