QCD under $250, But No Acknowledgement from Charity

[JohnH]

If a Qualified Charitable Distribution in an amount less than $250 is made to a legitimate charitable organization, but the organization fails to provide a written acknowledgement, is the distribution still excludable from the taxpayer's gross income?  I know it would ordinarily be deductible as an itemized deduction even in the absence of an acknowledgement from the charity, but do the rules change any manner with QCD's? 

[BulldogTom]

I don't think you need the acknowledgement from the charity.   I have always assumed that the trustee of the account is checking the validity of the charitable organization's 501 c 3 status before they set up the distribution.   That may be wrong but that is how I always thought about it.   The 1 client I have who set up a QCD at my suggestion has never sent me a donee acknowledgement and the amount is significant.   I have just entered the info from the 1099R and went on.

Tom
Longview, TX

[Lee B]

I personally do 5 QCDs every year and I have always received a donee acknowledgement from each of them (all over $250).

I also have a client who makes 3 sizable QCDs every year who also receives donee acknowledgements.

The account fiduciary is following your instructions. They are not verifying the validity of your donation. 

If you ask, the fiduciary will provide you with a copy of the cancelled check.

 

"Get a receipt

QCDs are not deductible as charitable contributions on Schedule A. But, as with deductible contributions, the donor must get a written acknowledgement of their contribution from the charitable organization before filing their return.

In general, the acknowledgement must state the date and amount of the contribution and indicate whether the donor received anything of value in return. For details, see the Acknowledgement section in Publication 526, Charitable Contributions.

For more information about IRA distributions and QCDs, see Publication 590-B, Distributions from Individual Retirement Arrangements (IRA).

[Abby Normal]

I think it would have been less confusing and more clear if the IRS had put the QCD subtraction on the Sch A. I've come close to taking the charitable contribution by mistake more than once because there was an acknowledgement that does not indicate it was paid for with a QCD.

[Lee B]

It's your clients responsibility to inform you. Most acknowledgments that I have seen don't indicate it's a QCD

The fiduciaries send clients a letter with the QCD details.

Some months ago when we discussed Tax Organizers, most posters didn't use them and didn't like them.

This is another reason that I use them and make my clients fill them out.

In fact I won't accept their annual tax documents without a completed organizer and a signed authorization letter.

[Abby Normal]

52 minutes ago, Lee B said:

It's your clients responsibility to inform you

Well, we all know how well that works out.

[JohnH]

6 hours ago, Lee B said:

I

"Get a receipt

QCDs are not deductible as charitable contributions on Schedule A. But, as with deductible contributions, the donor must get a written acknowledgement of their contribution from the charitable organization before filing their return.

In general, the acknowledgement must state the date and amount of the contribution and indicate whether the donor received anything of value in return. For details, see the Acknowledgement section in Publication 526, Charitable Contributions.

For more information about IRA distributions and QCDs, see Publication 590-B, Distributions from Individual Retirement Arrangements (IRA).

This is the focus of my question.  We all know that a properly worded receipt is required for Schedule A documentation for any contribution $250 or over.  But my question is related to whether a receipt is needed if the amount of each QCD contribution is less than $250.  If  deducted on Schedule A, the canceled check is sufficient documentation for the deduction(s), even if there are multiple contributions under $250 to the same charity.  Is that the same case with QCD's, or is there a different standard?

[Lee B]

I think the rules for a QCD under $250 are the same as for a charitable contribution deducted on Schedule A