Cash
Income Tax Deduction
The donor may deduct the amount of cash transferred in the year of the gift, up to 50% of his or her adjusted gross income (AGI), for gifts to public (50%) charities; the limitation is 30% of AGI for gifts to private foundations (30% charities). A five-year carryover is allowed for deductions that exceed these ceilings.
Capital Gains Considerations
None
Date Gift Is Effective
The gift is effective on the date of the unconditional delivery of cash, check, or electronic transfer of funds to a charity or its agent. Gifts by check are considered made when they are mailed (postmark date governs); credit card gifts are completed on the date the charge is made. Pledges and promissory notes are deductible when paid.
Method of Transfer
Checks or other cash equivalent, including credit card charges, electronic transfers, and physical delivery of cash.
Valuation of Gift Assets
Amount of cash
Substantiation Requirements
For gifts under $250, a canceled check or other bank record is required. For gifts of $250 or more, a written receipt from the charity describing the gift and stating whether goods and services were received by the donor (quid pro quo statement), issued prior to the filing of the donor's tax return, is needed.
Special Considerations
Cash gifts are deducted first when donor gives both cash and noncash assets during the year; carried over deductions from cash gifts are considered before carryovers of property gifts. Gifts also may save gift and estate taxes.
The donor may deduct the amount of cash transferred in the year of the gift, up to 50% of his or her adjusted gross income (AGI), for gifts to public (50%) charities; the limitation is 30% of AGI for gifts to private foundations (30% charities). A five-year carryover is allowed for deductions that exceed these ceilings.
Capital Gains Considerations
None
Date Gift Is Effective
The gift is effective on the date of the unconditional delivery of cash, check, or electronic transfer of funds to a charity or its agent. Gifts by check are considered made when they are mailed (postmark date governs); credit card gifts are completed on the date the charge is made. Pledges and promissory notes are deductible when paid.
Method of Transfer
Checks or other cash equivalent, including credit card charges, electronic transfers, and physical delivery of cash.
Valuation of Gift Assets
Amount of cash
Substantiation Requirements
For gifts under $250, a canceled check or other bank record is required. For gifts of $250 or more, a written receipt from the charity describing the gift and stating whether goods and services were received by the donor (quid pro quo statement), issued prior to the filing of the donor's tax return, is needed.
Special Considerations
Cash gifts are deducted first when donor gives both cash and noncash assets during the year; carried over deductions from cash gifts are considered before carryovers of property gifts. Gifts also may save gift and estate taxes.
