IRS 170(f)(8) Requirements for Charitable Contributions
Understand the specific IRS documentation and timing rules for substantiating significant charitable contributions to ensure your deductions are valid.
Internal Revenue Code Section 170(f)(8) establishes proof requirements for taxpayers who deduct charitable contributions on their federal income tax returns. The Internal Revenue Service (IRS) uses this rule to ensure that donations are properly substantiated with documentation from the receiving organization. The responsibility for obtaining this proof lies with the donor, not the charity. Failure to secure the specified documentation can lead to the disallowance of the deduction.
The $250 Threshold and Its Application
The substantiation requirements are triggered for any single contribution of $250 or more. This rule applies to both monetary gifts and non-cash donations of property. Separate payments are not combined to meet the $250 threshold. For instance, if a donor makes monthly payments of $100, these are treated as separate contributions, and the acknowledgment rule does not apply.
A single lump-sum payment of $1,200, however, would be considered one contribution and would fall under these documentation rules. The same logic applies to donations made through payroll deductions; each deduction is treated as a separate contribution. It is the amount of an individual payment or the value of a specific property transfer that determines if the rule is activated, not the cumulative total of donations made to a single charity over the course of a year.
Required Information for the Written Acknowledgment
When a contribution meets the $250 threshold, the taxpayer must obtain a written acknowledgment from the donee organization to substantiate the deduction. This document must contain several pieces of information to be valid, including the name of the charitable organization that received the donation. For cash contributions, the document must specify the dollar amount of the gift. If the donation consists of property rather than cash, the acknowledgment must include a description of the item.
The charity is not required to provide a value for the non-cash property; the responsibility for valuing the donated item rests with the taxpayer. The acknowledgment must also include a statement regarding whether the organization provided any goods or services in consideration for the contribution. If no goods or services were provided, the document must explicitly state this.
If the charity did provide goods or services, the acknowledgment must contain a description and a good-faith estimate of their value. The donor’s deductible contribution is then limited to the amount of the contribution less the value of the goods or services received.
Understanding the “Contemporaneous” Requirement
A component of the substantiation rule is the timing for obtaining the written acknowledgment. The law requires the acknowledgment to be “contemporaneous.” A taxpayer must receive the acknowledgment from the charity by the earlier of two possible dates: the date on which the taxpayer files their income tax return for the year of the contribution, or the actual due date for filing that return, including any extensions. This timing requirement places the burden of diligence on the taxpayer.
For example, for a donation made in 2024, if the taxpayer files their return early, on March 1, 2025, they must have the acknowledgment in hand by that date. If they wait to file until the standard deadline of April 15, 2025, that becomes their deadline for obtaining the document. Should the taxpayer file for an extension to October 15, 2025, they have until they physically file their return or until October 15, whichever comes first, to secure the necessary paperwork. Obtaining the acknowledgment after the return has been filed does not meet the contemporaneous requirement.