Charities Welcome Clarity of Substantiation Rules

Charities Welcome Clarity of Substantiation Rules

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“Overall, the final regulations don’t rock the boat at all,” Jennifer Chandler of the National Council of Nonprofits told Tax Notes. “They just clarify some details that can help charitable nonprofits educate and inform donors about donors’ obligations if the donor is hoping to claim a deductible gift.”

Like the proposed regs, the final version says emails may be used to substantiate monetary contributions. That is helpful, according to Chandler.

“Sending a hard copy letter to donors to substantiate a gift is not required, although it is likely a practice that many charitable nonprofits will continue,” Chandler said.

The final regs also make clear that a bank pledge card provided by a donee but filled out by the donor is insufficient substantiation. But in response to commentators’ queries, the final regs provide that a single written acknowledgement can satisfy both the contemporaneous written acknowledgment rules under section 170(f)(8) and the section 170(f)(17) recordkeeping requirements.

Source Name: 
Tax Notes
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