The Tax Law of Charitable Giving, 5th Edition

Chapter Twenty - OneSubstantiation and Appraisal Requirements

1. § 21.1 Introduction
2. § 21.2 Substantiation Requirements for Gifts of Money
3. § 21.3 Substantiation Requirements for Gifts of $250 or More
   1. (a) General Rules
   2. (b) Courts' Interpretation of Rules
4. § 21.4 Substantiation Requirements for Noncash Gifts
5. § 21.5 Appraisal Requirements
   1. (a) Qualified Appraisal
   2. (b) Qualified Appraiser
   3. (c) Substantial Compliance Doctrine
6. § 21.6 Appraisals and Penalties
   1. (a) Taxpayer Penalties
   2. (b) Aiding and Abetting Penalty
7. § 21.7 Appraisals of Clothing and Household Items
8. § 21.8 Burden of Proof Rules

A donor to a charitable organization, and the charitable organization that is the donee, must adhere to a battery of rules as a condition of allowance of the otherwise allowable federal income tax charitable contribution deduction. That is, when there is noncompliance with these rules, the donor will not be entitled to the charitable deduction, notwithstanding the fact that all other applicable rules have been followed. In other instances, these rules impose civil penalties as a sanction. These rules—some of which mandate forms of substantiation—embrace receipt, record-keeping, and reporting requirements.

§ 21.1 Introduction

The federal tax law concerning the income tax charitable contribution deduction record-keeping and substantiation requirements has been altered frequently over recent years. For some time, the record-keeping requirements were minimal. This changed dramatically as to contributions ...