Not tax advice. This article is general educational information. For advice about your situation, talk with a qualified tax professional. IRS rules can change, and your facts matter.

IRS Rules for Non-Cash Charitable Donations (What You Must Know)

Non-cash donations are where people get nervous—and for good reason. Cash donations are usually simple: you donated money; you keep a receipt; you’re done. Non-cash donations require:

reasonable FMV,
better descriptions,
and additional forms above certain thresholds.

This guide summarizes the key rules and the practical system that keeps you compliant without turning your life into paperwork.

Start with the foundation: donations must be to qualified organizations

A deduction generally requires giving to a qualified organization as defined by the IRS. Gifts to individuals are generally not deductible. Pub. 526 explains eligible organizations and exceptions.
Source: https://www.irs.gov/pub/irs-pdf/p526.pdf

What counts as a non-cash charitable donation?

Non-cash contributions include things like:

clothing and household goods
furniture and appliances
vehicles (special rules)
securities (special rules)
other property

Different property types have special rules, but most “household” non-cash donations share the same FMV and substantiation logic.

Substantiation: what the IRS wants you to have

The IRS’s substantiation guidance focuses on:

proof you donated the property
reasonable valuation
additional disclosures for higher amounts

Source: https://www.irs.gov/charities-non-profits/substantiating-charitable-contributions

Recordkeeping that reduces stress later

For charitable deductions, the IRS focuses on substantiation—proof you made the gift and a reasonable basis for the amount you claimed. A practical system includes:

Date of donation
Donee/charity name (and location if helpful)
Description of what you gave (specific beats vague)
FMV method (value guide range, sold comparables, appraisal when required)
Receipt or written acknowledgment when required

The $250 Rule (In Plain English — and Why It Trips People Up)

This is one of the most common charitable-deduction mistakes, and it’s not because people are trying to cheat. It’s because the rule is counterintuitive.

What the IRS Actually Cares About

If you claim $250 or more for a single donation, the IRS doesn’t just want proof that you donated. It wants proof that the charity acknowledges the donation in writing — with specific wording.

This is called a “contemporaneous written acknowledgment.”

Ignore the jargon. What it really means is

You need a written statement from the charity that confirms the donation and whether you received anything in return.

If you don’t have that acknowledgment, the IRS can disallow the deduction entirely, even if:

you have a bank statement,
you have a canceled check, or
everyone agrees you made the donation.

That’s the part most people miss.

What Counts as a “Written Acknowledgment”

The acknowledgment can be:

a letter
an email
a PDF receipt
an online donation confirmation page (saved or printed)

But it must include all of the following:

The name of the charity
The date of the contribution
The amount of cash donated or a description of non-cash property
A statement about goods or services received, which must say one of:
- “No goods or services were provided in exchange for this contribution,” or
- A good-faith estimate of the value of what you received (for example, a charity dinner)

If any of these are missing, the acknowledgment may not qualify.

What “Contemporaneous” Means (This Matters)

“Contemporaneous” simply means you have the acknowledgment by the time you file your tax return, or by the due date of the return (including extensions).

You cannot fix this later.

If you file your return and then realize you never got the acknowledgment, it’s too late — even if the charity would be happy to send one afterward.

Common Situations That Do and Do Not Qualify

✅ Qualifies

An email receipt from the charity with the required wording
A year-end donation summary that includes each qualifying donation
A mailed letter confirming the contribution and stating no goods or services were received

❌ Does Not Qualify

A bank or credit-card statement alone
A canceled check by itself
A generic “thank you” note that doesn’t mention goods or services
A receipt that lists an amount but says nothing about what you received in return

Payroll Deductions Are a Special Case

If your charitable donation is taken directly from your paycheck, you can usually satisfy the rule with:

a pay stub or W-2 showing the contribution amount, and
documentation from the charity stating it provided no goods or services in exchange

This exception trips people up less often, but it still has documentation requirements.

Why This Rule Exists (and Why the IRS Enforces It Strictly)

The IRS uses this rule to prevent people from claiming deductions for:

“donations” that were really purchases (like tickets, merchandise, or meals), or
contributions where the donor received something of value in return

Because of that, the rule is enforced mechanically.
No acknowledgment = no deduction.

There’s no partial credit and no do-overs.

Practical Takeaway

If a single donation is $250 or more, make this a habit:

Before tax time, confirm you have a written acknowledgment from the charity that explicitly says whether you received anything in return.

If you track donations as you go — and attach the acknowledgment when you receive it — this becomes a non-issue.

The thresholds that trigger extra requirements

Key non-cash thresholds (common checkpoints)

These are commonly-cited non-cash documentation checkpoints in IRS materials (see Pub. 526 and Form 8283 instructions):

$250 or more: contemporaneous written acknowledgment required (in many cases)
Over $500: Form 8283 is generally required for non-cash contributions (and for groups of similar items over $500)
Over $5,000: a qualified appraisal is often required (with exceptions, e.g., publicly traded securities), and Section B of Form 8283 is used
Clothing/household item not in good used condition: special rule—deduction generally not allowed unless you meet the “good used condition or better” requirement; if claiming more than $500 for a single such item, Section B/appraisal rules can apply (see Pub. 561 & 8283 instructions)

Sources:

Form 8283 instructions: https://www.irs.gov/pub/irs-pdf/i8283.pdf
Pub. 561 (clothing/household condition): https://www.irs.gov/publications/p561

Form 8283: when it matters

Form 8283 is used to report information about noncash charitable contributions when certain thresholds apply. The instructions explain who must file and how “similar items” are treated.
Source: https://www.irs.gov/pub/irs-pdf/i8283.pdf

Clothing and household items: “good used condition” requirement

The IRS generally says no deduction for clothing/household items unless in good used condition or better, with special rules for certain high-value items. (Pub. 561.)
Source: https://www.irs.gov/publications/p561

What to do if you don’t have perfect records

Perfection isn’t required; credibility is. If you’re missing something:

reconstruct cash gifts from bank/credit card statements (where reasonable)
add better descriptions now while you still remember
keep future donations organized going forward

If you’re missing a required written acknowledgment for a $250+ contribution, talk with a tax professional about options for your situation.

A practical non-cash compliance system (simple version)

Log donations the day you donate (or weekly)
Save the receipt in a safe place
Use conservative FMV and short notes
Watch your non-cash totals by year
If you approach higher thresholds, prepare for Form 8283/appraisal rules

Next reads

FMV basics: Understanding Fair Market Value
Form 8283 deep dive: Understanding Form 8283
Audit-safe records: Keeping Audit-Safe Records

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IRS Rules for Non-Cash Charitable Donations (What You Must Know)