Saturday, May 26, 2012

Donation tip

When you make a donation of more than $250, and you do not receive goods or services in return (coffee mugs and such tokens do not count), make sure that the written acknowledgement that you receive specifically says that you did not receive goods or services.  Otherwise the deduction could be disallowed in an audit.  It has happened.  Churches and small charities sometimes forget the exact formulas they are supposed to follow in such matters, but the law is specific about what is required.  (See instructions for Schedule A, Itemized Deductions, for more specific information.)

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