Will you be donating to charities this year? The Internal Revenue Service (IRS) reminds us that
you must itemize deductions on Schedule A of your tax return to claim a deduction for charitable
gifts. The following five tips can also help ensure that your charitable gifts count.

Tip #1: Give to a qualified charity. Only gifts to a qualified charity are deductible on your
income tax return. The IRS offers a handy website, the Tax Exempt Organization Search Tool,
to determine whether your favorite organizations qualify. You can also deduct donations made
to churches, synagogues, temples, mosques, and government agencies, even if they are not
listed in this database.

Tip #2: Give some cash. Gifts of money can be made by check, electronic funds transfer,
credit card, or payroll deduction. To claim a monetary gift as a deduction on your tax return, you
must have specific documentation, which varies based on the amount donated, such as a bank
record (e.g., canceled check, bank statement, credit card statement) or written document from
the charity (listing the organization’s name and the date and amount that was given). For payroll
deductions, keep a copy of your pay stub(s), W-2, or other employer-provided document
showing the total amount withheld, along with the pledge card listing the name of the charity.

Tip #3: Donate some stuff. You can take a tax deduction by giving away your gently used
household items (e.g., furniture, furnishings, electronics, appliances, linens) and clothing as long
as they are in good or new condition. If possible, to substantiate your deduction, get a receipt
from the charity that includes the organization’s name, date of the contribution, and a detailed
description of the donated items. If you leave the items at an unattended drop site, make a
written record of the donation with the same details.

Tip #4: Give before the end of the year. Donations are deductible on your tax return in the
year they are made. If you donate by check, the deduction applies in the year in which the
check is mailed or postmarked. For credit card donations, the deduction applies in the year in
which the charge was processed, even if you do not pay the credit card statement until the
following year.

Tip #5: Keep good records. Always keep detailed records of any charitable gifts you make.
Your records should include the date of the donation, a description of the item or monetary
amount given, the name and address of the organization, the fair market value of the property at
the time of the donation, and the method used to determine the value. You must obtain a written
acknowledgment from the charity if a donation (of either cash or stuff) is valued at $250 or more.
If the donation consists of an automobile, boat, or airplane, special rules apply, which can be
found on the IRS website.
Have Questions About Deducting Charitable Gifts?

If you have questions about making deductible charitable donations part of your estate plan,
please call Tina M. James, Esq to schedule an appointment.