IRS Publishes Proposed Charitable-Gift Guidelines

The Internal Revenue Service has published proposed rules aimed at making sure donors keep proper records to substantiate gifts of cash and property they make to charities.

The proposal explain how the tax agency plans to enforce laws enacted in recent years that included provisions designed to cut down on abuses by donors and charities.

For example, the Pension Protection Act of 2006 said no tax deduction could be taken for gifts to charities of furniture, household goods, and clothing that are not in “good used condition or better.”

In its proposed rules, the IRS said that it and the Treasury Department are “aware that a number of charities publish donation guidelines listing items the charity will and will not accept, and believe that the guidelines are helpful in ensuring that charities receive donations of items that are of meaningful use to the charity.”

The revenue service said it welcomes comments from charities on how donation guidelines they publish may relate to the “good used condition” requirement in the law.

The proposed rules were published in today’s Federal Register.

The IRS requests that comments about its proposal be submitted by November 5.