| How many times has it been that you have not filed | | | | appraisals for donated property. People who pay |
| your income tax properly? Just to be able to save | | | | taxes have to keep accurate records of the charitable |
| some money from the government you risk going | | | | contributions they have made. |
| behind the bars. Why take such pains when an easier | | | | Under the Pension Protection Act, a written record of |
| method of saving tax from the government is available | | | | all cash donations must be kept. Donations of $250 or |
| and which is also completely legal. Simple, you donate | | | | more than that will not be allowed as a tax deductible |
| to a charity. | | | | unless a supporting documentation can be provided |
| If you donate to a charity then you can save on your | | | | along with them. |
| tax bills. There are a few rules though that you must | | | | Your records must clearly indicate the name of the |
| keep in your mind so that your contributions to a | | | | organization, the date you made the contribution, and |
| charity are recognized. The donation must pass a | | | | the amount or the item you contributed. Contributions |
| certain criteria so that the Australian government can | | | | of property or other items (other than cash) should be |
| exempt tax on it. You must actually make a donation | | | | recorded accurately and are subject to substantiation |
| to a charity and only a promise to donate to a charity | | | | rules. You must substantiate the fair market value of |
| does not count for tax exemption. The charity you | | | | the goods or property you donated, plus keep any |
| donate to must be having a tax - exempt status | | | | written acknowledgments you receive from the |
| otherwise tax will not be exempted. Some | | | | charity. |
| organizations such as churches and other religious | | | | Donating to charities proves to be a successful |
| organizations do not need to have such a status. | | | | method of saving taxes from the government but this |
| Although giving to charities is a great tax saving | | | | method also involves accuracy in keeping records |
| strategy, but for that to happen you have to be able to | | | | because the government asks for every small record. |
| itemize your deductions. A record of all such donations | | | | In this way peoples both problems of donating to |
| must be kept. | | | | charities and saving taxes are solved. It's like killing two |
| These records include canceled checks, | | | | birds with one stone. |
| acknowledgment letters from the charity, and | | | | |