Yes, if your non-cash donation is worth more than $5,000, the IRS requires a qualified written appraisal before you can claim the deduction. Cash gifts have lighter rules: keep a bank record for any amount, and get a written acknowledgment for gifts of $250 or more. Miss these thresholds and the IRS can reduce or fully disallow your deduction, even if the donation itself was completely legitimate.
What Changed for Cash Donations
What changed: Starting with tax year 2026, taxpayers who don’t itemize can still deduct up to $1,000 in cash gifts ($2,000 for married couples filing jointly) to qualified charities.
Who it affects: Anyone claiming the standard deduction who still wants credit for charitable giving.
What to do: Save every receipt or bank record showing the charity’s name, date, and amount – even small gifts now count.
Ohio/Columbus Note: This is especially useful for Columbus-area donors giving to local nonprofits who’ve never itemized before.
The $250 Acknowledgment Rule
What changed: Any single cash or property donation of $250 or more requires a contemporaneous written acknowledgment from the charity before you file.
Who it affects: Donors making mid-size gifts to churches, schools, or nonprofits throughout the year.
What to do: Confirm the letter states the amount and whether you received anything in return, like event tickets or merchandise.
Ohio/Columbus Note: Central Ohio galas and fundraisers often include a meal or gift – make sure that value is disclosed separately.
The $5,000 Appraisal Trigger
What changed: Non-cash gifts over $5,000 (artwork, real estate, collectibles, or cryptocurrency) require a qualified independent appraisal and Form 8283, Section B.
Who it affects: Donors gifting appreciated property instead of cash, a common strategy for high-net-worth taxpayers.
What to do: Line up a qualified appraiser before the donation, not after, since the appraisal must be timely and consistent with your return.
Ohio/Columbus Note: We regularly help Columbus clients donate appreciated real estate to local foundations – timing the appraisal correctly is the difference between a full deduction and a denied one.
The Overvaluation Penalty Nobody Talks About
What changed: If the IRS determines your claimed value is 200% or more of the actual fair market value, a 40% penalty applies on top of the additional tax owed.
Who it affects: Anyone relying on an inflated appraisal for collectibles, business interests, or hard-to-value property.
What to do: Choose an appraiser with no financial stake in the outcome and keep documentation showing how the value was calculated.
Ohio/Columbus Note: This penalty has caught more than a few well-intentioned Ohio donors off guard during audits.
Form 8283: The Paperwork That Protects Your Deduction
What changed: Any non-cash gift over $500 requires Form 8283 attached to your return, with Section B and appraiser signature required above $5,000.
Who it affects: Donors of vehicles, inventory, stock, or collectibles – not just major art or real estate gifts.
What to do: Work with your CPA to complete Form 8283 accurately and match it word-for-word with your appraisal.
Ohio/Columbus Note: Our tax advisory team reviews Form 8283 filings for Columbus clients every appraisal season to catch mismatches before the IRS does.
The Bottom Line
Charitable giving should reward you at tax time – not create an audit risk. Whether you’re donating cash, property, or cryptocurrency, the deduction only holds up if the paperwork holds up. For a deeper look at how non-cash gifts are valued.
Ready to Protect Your Deduction?
Charitable planning shouldn’t cost you money in penalties. Harper & Co CPAs Plus helps Columbus-area individuals and families structure charitable gifts correctly the first time – from Form 8283 to appraisal timing to audit-ready documentation. Schedule a consultation with our tax advisory team today and give with confidence, not guesswork.
Frequently Asked Questions
Do I need a receipt for cash donations under $250?
Yes. Even small cash gifts require a bank record or written communication from the charity showing its name, the date, and the amount donated. Without this, the IRS can deny the deduction regardless of the gift’s size.
What happens if I don’t get an appraisal for a $6,000 donation?
Your deduction can be reduced or fully disallowed. The IRS requires a qualified written appraisal for non-cash gifts over $5,000, and skipping this step is one of the most common reasons charitable deductions get denied on audit.
Can I deduct donations if I take the standard deduction?
Starting in tax year 2026, yes – up to $1,000 for individuals or $2,000 for married couples filing jointly, but only for cash contributions to qualified organizations.
Is donating to a GoFundMe tax deductible?
Generally, no. Gifts to individuals, including personal fundraising campaigns, are not tax-deductible, even if the recipient is facing hardship. Only donations to IRS-recognized qualified organizations count.
What is the penalty for overvaluing a charitable donation?
The IRS can impose a 40% penalty when a claimed value is 200% or more above the correct fair market value, on top of any additional tax owed on the disallowed portion of the deduction.
How do I know if a charity is IRS-qualified?
Use the IRS Tax Exempt Organization Search tool on IRS.gov to confirm eligibility before donating. This takes just a few minutes and prevents you from claiming a deduction for a non-qualifying gift.
Do I need Form 8283 for every non-cash donation?
You need Form 8283 for any non-cash donation over $500. Above $5,000, Section B and a signed appraiser statement are also required for the deduction to hold up.
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