Giving with Heart and Smarts: A Guide to Charitable Donations After a Disaster

When disaster strikes, like the devastating floods we’re experiencing in central Texas right now, the urge to help is immediate and human. Whether it's donating to rescue efforts, helping displaced families, or supporting local recovery funds, your generosity can make a real difference.

But as accountants, we know that even giving needs a little paperwork. So while your heart leads, let’s make sure your brain (and your tax records) follow.

First: Make Sure the Charity Is Legit

Unfortunately, times of crisis also attract scams. Here's how to be sure your donation goes where it’s truly needed:

• Look for IRS-Recognized 501(c)(3) Status
  Only donations to qualified charities are tax-deductible. You can check the status at the IRS Tax Exempt Organization Search.

• Do a Quick Reputation Check
  Use sites like Charity Navigator, Give.org, or Guidestar to see ratings, transparency, and financial health of organizations.

• Red Flags to Watch For
  If they won’t give details about how funds are used, pressure you to pay via gift card or crypto, or use vague names like “Flood Victims USA Relief Fund Foundation LLC"—RUN.

How to Document Your Donation for Tax Purposes

Good intentions don’t equal good deductions unless you follow the IRS rules. Here’s what you need to do:

Cash, Credit, or Digital Donations

• Keep a bank statement, credit card statement, or digital receipt showing:

  • Date

  • Name of the charity

  • Donation amount

• If the donation is over $250, you also need a written acknowledgment from the charity (more on that below).

Donating Goods or Property

• Keep a detailed list of items donated (condition, estimated fair market value, date, and recipient organization).

• For non-cash donations over $500, fill out Form 8283 with your tax return.

• If your donation is worth over $5,000, you'll need a qualified appraisal.

Acknowledgment Letter Requirements (for donations $250+)

Your letter must include:

• The name of the organization

• The amount (or description) of what was donated

• A statement that no goods or services were received in exchange (unless you did get something, like event tickets—then the charity must say what it was and its value)

Bonus Tip: Keep a “Charitable Giving” Folder

Whether you’re a business or an individual, having one place—physical or digital—to store donation records throughout the year makes tax time a lot smoother. If you’re a QuickBooks user, consider creating a tag or category for donations so nothing gets lost.

Final Thoughts

In a time when our community is grieving and rebuilding, every donation helps. And when you give wisely and keep the right documentation, you’re not just helping others—you’re also making sure your generosity counts come tax time.

Stay safe. Stay generous. And if you have questions about documenting your charitable giving, Kardinal Business Solutions is here to help.