A recent Tax Court case (Besaw, T.C. Summary Opinion 2025-7) is a reminder that good intentions aren’t enough when it comes to claiming charitable deductions.
In this case, a Washington man claimed a $6,760 deduction for noncash charitable contributions in 2019. While the court believed he did make the donations, his deduction was denied because he didn’t meet IRS substantiation requirements under IRC §170(a)(1).
Key Takeaways for Nonprofits & Donors:
✅ Contemporaneous documentation matters – Receipts must include the charity’s name, date, location, and a description of the donated items.
✅ Over $250? – You need a written acknowledgment from the charity at the time of the donation.
✅ Over $500? – Keep records showing how/when the property was acquired and its cost or basis.
✅ Reconstructed lists after the fact don’t count – Documentation must be in place at the time of the gift.
Even though the IRS later dropped the accuracy-related penalty, the taxpayer still lost the deduction—proof that recordkeeping is just as important as generosity.
📌 Bottom line: If you’re donating noncash items, make sure you have all required documentation before filing your return.
