| You can deduct donations made to qualified charitable | | | | organization to buy real property at a bargain price, |
| organizations only in the year you actually make | | | | you cannot claim a deduction until the organization |
| them. Usually, you make a donation at the time of its | | | | exercises such option. |
| unconditional delivery according to IRS. | | | | 7. Borrowed funds – If you make a donation with |
| 1. Donations by checks – If your mail a check to a | | | | borrowed money, you can claim a deduction in the |
| charitable organization, the date when you mail the | | | | year you make the donation, irrespective of when you |
| check is considered to be the date of donation. | | | | repay the loan. |
| 2. Donations by credit cards – The date on which | | | | 8. Conditional gift – If you make a conditional gift |
| the contributions are charged to your credit card | | | | depending upon a future act or event that may or |
| account is the date of donation. | | | | may not take place, you cannot claim such a |
| 3. Donations by using Pay by phone account – If | | | | deduction. |
| you use A Pay by phone account to make donations, | | | | Example –You make a cash donation to a school, |
| the date on which the financial institution pays the | | | | to build a school. The school accepts the donation on |
| amount is the date of your donation. You should use | | | | the condition that if it fails to collect enough money to |
| the statement sent by the financial institution as the | | | | build the gym, it would return your money. In this |
| proof of donation. | | | | situation there is a chance of refund and you cannot |
| 4. Stock certificate - If you donate stock certificates, | | | | claim deduction of your gift as it charitable contribution. |
| the transaction is supposed to be completed on the | | | | If there is only a negligible chance that the act or the |
| date of mailing properly endorsed stock certificate. | | | | event will not take place, you can claim that deduction. |
| However if you hand over a stock certificate to your | | | | Example – If you donate land to act for making a |
| agent or to the issuing corporation for transfer to the | | | | public park, and the city does plan to use the land for a |
| name of the charity, the donation is not completed until | | | | park, then there is very negligible chance of the land |
| the transfer is completed. In this case, and the date | | | | being used for any other purpose. So you can claim |
| of transfer will be considered as the date of your | | | | your deduction for such a donation. |
| donation. | | | | Remember, if you claim the charitable contribution |
| 5. Promissory note – If your issue and deliver a | | | | deduction in the wrong year, IRS will not only disallow it |
| promissory note to a charitable organization, this is not | | | | but can levy severe penalties on under-payment of |
| a donation until the actual payment is made. | | | | tax. So you need to be careful about the year in |
| 6. Option – If you allow an option to a charitable | | | | which you should claim a donation. |