All gifts are tax deductible. The mission of Baptist University of the Américas, as an institution of higher education, is the formation, from the Hispanic context, of cross-cultural Christian leaders.
The Internal Revenue Service (IRS) requires that gifts of property to charitable organizations must be properly substantiated. When a taxpayer donates property or goods and claims a charitable deduction, he or she must be able to “substantiate” the deduction. He or she must prove that the donation was made, and establish how much the donated property or goods were worth at the time of contributions of property of goods, the IRS requires the donor to obtain from the donee a receipt reflecting the donation, and to maintain the receipt in his or her files. It is the responsibility of the donor to get a receipt, and donee must provide it upon request. The donee need not (and should not) attempt to place a value on the goods even if requested by the donor to do so.
If a donor’s claimed deduction is $500 or less, the donor only needs to substantiate his or her deduction with a receipt from the donne that accepted the donation. The receipt must contain (1) the name of the donee; (2) the date and location where the donation was received; (3) a reasonably good description, under circumstances, of the property received.
Additional information, over and above the basic information required in the receipt, must be included in the written records maintained by the donor. The value, and the basis for determining it, must be reflected in the donor’s records. Also, if there are any understandings or agreements about the donee’s use or disposition of the property or goods, these must be reflected in the donor’s records.
For gifts of property valued at more than $500, but not over $5,000, the donor’s obligation to the IRS is enlarged. Not only must the donor maintain a receipt of the donation, but he or she is also required to maintain and submit to the IRS additional written records of: (1) the manner in which the property was acquired, and (2) if the property has been held for less than 12 months, his or her cost or other basis. This requirement is met by filing out Section A of IRS Form 8283, “non-cash Charitable Contributions” (form can be obtained from the IRS) and attaching copy of the form to his or her income tax return.
Retain this receipt for tax deduction purposes. No goods or services were provided in exchange for this contribution.