I have a few small donations without receipts, but I have the cancelled checks. Can I still claim those donations? And will they be added to the Grand Total?

[mesquitebean · Accepted solution]

So you are referring to cash donations you paid by check?

A canceled check can indeed serve as proof of donation for a donation under $250.  There are some additional recordkeeping requirements for higher amounts as explained below.

This is what the IRS says about Cash Donations in Publication 526:

"You can't deduct a cash contribution, regardless of the amount, unless you keep one of the following.

1. A bank record that shows the name of the qualified organization, the date of the contribution, and the amount of the contribution. Bank records may include:

   1. A canceled check,

   2. A bank or credit union statement, or

   3. A credit card statement.

2. A receipt (or a letter or other written communication) from the qualified organization showing the name of the organization, the date of the contribution, and the amount of the contribution.

3. The payroll deduction records described next."

Contributions of $250 or More

You can claim a deduction for a contribution of $250 or more only if you have an acknowledgment of your contribution from the qualified organization or certain payroll deduction records.

If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that lists each contribution and the date of each contribution and shows your total contributions.

Amount of contribution.

In figuring whether your contribution is $250 or more, don't combine separate contributions. For example, if you gave your church $25 each week, your weekly payments don't have to be combined. Each payment is a separate contribution.

NOTE:  This answer is not a complete description of all of the rules for cash donations and recordkeeping requirements.   Please refer to IRS Publication 526--Charitable Contributions for more info.  Here is the link:

https://www.irs.gov/publications/p526

[kas123]

Hi, I've seen this term used often - "cancelled check". What exactly does that mean?

Let's say I give $60 to a church - and it's $60 in cash (as in green money, twenty dollar bills, cash). What am I supposed to do to substantiate that? Fill out a check, and just write "CANCELLED" across it, and then keep it for my records?

Or does it mean something else?

Thanks

[SusanY1]

A canceled check is a check that has been presented to a bank, cashed (or cleared), and then "canceled" by the bank.  Most banks preserve images of these checks on a customer's account statement.   These checks show proof that the funds were received by the party to which the check was issued.  

What you describe would be a voided check, which is not proof of payment.

To substantiate a cash dollar bill donation to a qualified charity, you should ask for a receipt and retain this receipt with your other important tax records.  The receipt should list the name, address, and phone number of charity along with the date and amount of the donation.  

@kas123