| First of all the charity donation must really happen | | | | the charity must be saved. If non-cash donations |
| because a pledge or promise to donate in not enough | | | | exceed $500 IRS Form 8283 must be attached. If the |
| for tax deduction. The donor must be careful to who | | | | donation is vehicle such as car, boat, truck or airplane |
| or what is giving hid donation. The receiver must be | | | | which worth exceeds $500, a written |
| eligible to itemize the donation. The organization that | | | | acknowledgement from the non-profit organization |
| receives the donation also must have tax-exempt | | | | must be received in order the be eligible for tax |
| status. | | | | deduction. |
| Record keeping requirements for the documentation | | | | There are certain limitations to this kind of tax |
| of the charity donation must be met. Taxpayers are | | | | deduction. If the donation is cash, than up to 50% of |
| required to keep excellent records of their charitable | | | | adjusted gross income can be deducted. If donation is |
| contributions. Donors must keep written records of all | | | | property, than up to 30% of adjusted gross income is |
| cash donations. Donations of $250 or more will not be | | | | deductible. If the donation is appreciated capital gains, |
| allowed as a tax deduction without supporting | | | | than up to 20% of adjusted income is deductible. The |
| documentation. Records must indicate the name of the | | | | excess contributions can be carried over for a |
| charitable organization, the date of your contribution, | | | | maximum of five years. |
| and the amount of the contribution. This new record | | | | Donations are not tax deductible if they are given to |
| keeping requirement took effect beginning with the | | | | individual people, labor unions, business associations, |
| 2007 tax year. If donation is other then cash it is also | | | | chambers of commerce, foreign governments, political |
| subject to tax deduction with note that every | | | | parties, professional associations, for profit schools and |
| documentation regarding that particular donation | | | | hospitals. |
| together with written acknowledgement received from | | | | |