WE DO NOT WANT YOUR RECEIPTS AND INVOICES

THESE ARE YOU RESPONSIBILITY TO KEEP

BUT THERE IS AN IMPORTANT EXCEPTION!

We must see and retain acknowledgment letters and receipts showing the amount of any document supporting the contribution of money (except for payroll deduction). Remember receipts/cancelled checks are now specifically required by statute to substantiate cash donations. There is no longer such a thing as “cash in the collection basket,” unless the cash is contributed in a numbered envelope which is then accounted for by the church or charity through the issuance of an official letter. We need to see the actual proof of these donations to ensure the documents are supportable in the face of the current IRS enforcement policy. In addition, we are now personally subject to sanctions for reporting charitable contributions on a tax return we prepare if these deductions cannot be supported under audit.

Any letter substantiating the donation of money must break down each donation by date and amount. A letter simply showing a lump sum contribution for a year is not acceptable unless you have assembled a series of cancelled checks which acts as the equivalent to such a letter.