New rules for deducting charitable contributions have gone into effect. If you don't comply with them you will lose your deductions for legitimate charitable gifts, or if you are a charity, risk fines and loss of donors. The aim of the new rules is to prevent taxpayers from deducting payments to charitable organizations that really are for goods and services rather than donations. For example, many churches offer day care, counseling and other services for which they charge a fee. A taxpayer might simply write a check to the church and then claim it as a charitable contribution at tax time.
Questions also arise with checks made out to private schools.
They generally qualify as charitable organizations under the tax code, so donations are deductible, but payments of tuition are not. The new rules are aimed at stopping such practices. You must obtain a written acknowledgement of your donation from the charity to verify the contribution. No receipt, no deduction. The amount of any cash contribution, or in the case of non-cash contributions a description of the property.