Charitable Contributions - What YOU Need to Know!

We all know the basics of charitable contributions, but there are a few things you may not know.

• Contributions to organizations such as JAFF (Jax Assn of Firefighters) and FOP (Fraternal Order of Police) are NOT tax deductible contributions. These are great organizations and you should still support them.
• The IRS considers anything charged on a credit as a cash transaction. So, you can put a contribution on your credit card before midnight 12/31 and you will be able to deduct it on your 2009 tax return. Just be sure you pay off the card! If you end up paying interest on it for months, you'll defeat the purpose!
• Generally, deductions for making contributions to most non-profits can't exceed 50% of your Adjusted Gross Income (AGI). Gifts of appreciated property are limited to 30% of AGI. If these restrictions limit your deduction, the balance of the deduction carries over to the next year.
• If you get something in return for your contribution, your deduction is limited to the amount you donated in excess of the Fair Market Value (FMV) of the item. For example, if you "win" a gift certificate in a silent auction with a value of $50 for $40, you have no deduction. If you paid $60 for it, then you have a $10 deduction.
• We all love to support college atheltics! If you donate funds to a college or university, and the contribution gives you the right to buy tickets to athletic events, you can deduct 80% of the contribution.
• The topic I am asked about most often.... Volunteering time or professional services. The value of your services is not a deduction. You CAN, however, deduct travel costs or any other out of pocket expenses. You can deduct charitable miles at the rate of .14 cents/mile. If you... take any form of public transportation to perform volunteer services, you may deduct those costs.