Charitable donations?

Question

I give cash every week at church, and under charitable donations it ask for any cash amounts. I give the same amount every week and it isn't much, but in a year I give 3,840.00. It helps with my taxes, but my question is if it is legal for me to put in on my return. I don't have a reciept for it, I just pull the money out of the ATM and drop it in the basket. On the 1040 form, it doesn't say anything about it, it just asks how much you donated in cash. I hope this makes sense. Thanks!

Answer 1

Yes, it is legal. However, if you get audited it could be a problem to prove (that doesn't make it illegal though). Does your church give donation envelopes? Perhaps you could put the money in the basket in a marked envelope. Then the church would have a record of your giving and could supply you with a receipt at the end of the year. Many churches do that. It won't help for 2006, but it would for 2007.

Answer 2

It's legal to claim it, although if you get audited it will very possibly be disallowed. Start paying by check so you have receipts. If you're dropping almost $75 a week into the collection plate in cash, you're looking for an audit, and might have a hard time convincing the auditor that you really do.

Does your church have envelopes with your name on them so they know how much you gave? Many churches send out a notice at the end of the year stating how much was contributed.

The rules are changing for 2007, and you MUST have receipts in order to deduct these contributions. You're already a few weeks in without receipts, if you're following last year's pattern, so won't be able to legally deduct those. Pay by check, debit or credit card (yes, some churches accept those), or money order.

Answer 3

Jan makes a good suggestion. Chruches in the UK had been doing that for some years when I left.

For '06 returns, you must be able to justify any single deduction of more than $250. On that basis you could legally claim the $3,840 but be prepared for a fight if you get audited.

For '07 definitely write a check and drop it in the plate. Cancelled checks will be accepted as proof for 2007 returns.

Answer 4

i am going to't say i like this concept a lot. it would want to be extra effective to ask travellers to donate to the reason instead of shopping for you a present. Or have the MC announce that there is not any 3 tier wedding ceremony cake as you've donated the money to an animal look after instead - bypass round a packet of chocolate biscuits instead. both do not have favours in any respect or cause them to very cheap. A tiny tree seedling is environmentally pleasant. Or how about a unmarried,brown, free variety egg wrapped in tulle - a protest adverse to battery poultry farming.; or a packet of wildflower seeds to sow both of their own backyard or on the area of the line or different communal floor.. or you would possibly want to perhaps include a wishing properly or different novelty money-making challenge on the reception with all proceeds going to charity. I easily do not imagine many human beings like" a donation has been made on your call" presents - it will be ideal to provide to Donald Trump or Elton John yet no longer as a wedding ceremony favour.

Answer 5

My accountant made this suggestion to me about cash offerings. Keep the bulletin from each week you give and write the amount on the bulletin. Put it in your file with your other tax information so you have a record if you get audited. That won't help for this tax year but if you start doing it now, you'll have a record for 2007.

Answer 6

You should have envelopes provided by the church you attend and then write the amount you give each week on the outside with your name. The church should then keep records and send you a yearly accounting of your donation for tax purposes. If you have not done it this way you will have to check with the I.R.S. and see how to handle this.

Answer 7

Ask the curch for a receipt. This'll be a hot button for auditors for the 06 returns.

Answer 8

In the future, you might want to write a check weekly instead.

Answer 9

You said it helps with your taxes which tells me you have filed this amt. before. It was accepted then and it will be accepted again. If they would have wanted a receipt they would have asked. Don't be intimidated. You are doing just fine.