Tax Receipt Information
United Way of Central and Northeastern
Connecticut will send gift confirmations to all
donors for gifts made or pledged through the 2008
United Way Community Campaign. These communications
will confirm all relevant gift information and
acknowledge that no goods or services were provided
by United Way in exchange for your gift/pledge.
Changes in Tax Law May Affect Your Gift
What you should know about IRS Notice 2006-110
“Recordkeeping Requirements for Charitable
Contributions made by Payroll Deduction” and the
Pension Protection Act of 2006 (effective August 17,
2006):
• If your employees contribute to charity through
payroll deduction, they must have a pay stub, W-2 or
other employer document showing the total amount
withheld for the charitable organization AND a donor
pledge card or pledge confirmation (the original, a
carbon copy or a photocopy of a paper form, or a
printout of an online donation) from the charity
confirming their pledge. This is needed to
substantiate and claim a tax deduction.
• If employees make a charitable contribution by
check or credit card, they must have either a bank
record (cancelled check made payable to the charity
or bank statement with the transaction) OR written
acknowledgement from a charitable organization
showing the date, amount contributed and name of the
organization.
• If employees make a charitable contribution by
cash, they must have a written acknowledgement
showing the date, amount contributed and name of the
organization. This may be generated by the employer
or United Way.
• If employees make a charitable contribution by
stock transfer, they must have a written
acknowledgement from United Way showing the date and
amount contributed.
Under the old law, donors could use “other
reliable written records” to substantiate charitable
contributions for tax purposes. The difference now
is that the IRS is specific about what official
documents will be accepted as proof of charitable
contributions, which may lead to increased
enforcement by tax preparers and auditors. Consult
your tax advisor for more information.
For more information, see IR-2006-186, “New
Guidelines for Payroll Deduction Contributions to
Charities.”