Noncash Contributions – What Charities Need to Know

Ever-increasing IRS reporting requirements with respect to noncash contributions have required charitable recipients to step up their documentation and reporting procedures. Because it is administratively easier for the IRS to monitor charitable recipients rather than the millions of individual and corporate donors, in recent years the IRS has shifted much of the reporting and documentation requirements from donors to donee charitable organizations. It is therefore important that charitable recipients understand what their reporting and tax filing obligations are in order to not only avoid filing penalties, but to help increase the likelihood that donors’ contributions are not disallowed.