IRS Donation Deductions

The IRS allows you to deduct your donations to charitable organizations if you itemize your deductions. If you itemize your deductions, however, you are not allowed to take the standard deduction.

Charitable Contributions

Charitable contributions are those made to qualifying organizations such as religious groups, nonprofit educational or scientific organizations and state and local governments. Donations to political parties, for-profit schools or hospitals and foreign governments are not deductible.

Valuing Your Deduction

Your deduction is equal to the value of your donation minus the value of anything tangible you received in return.

Charity Miles

Though you cannot deduct the value of your donated time, you can deduct the cost of the miles that you drove to perform charity work. For 2009, the rate is $0.14 per mile.

Limitations and Carryovers

The amount you can deduct on your taxes is based on your adjusted gross income and the donation type. If your donation exceeds the limit, you can carry over any excess value for up to five years.

Documentation

For donations greater than $250, you must have written acknowledgment from the receiving organization. If your donation of goods or property exceeds $5,000, you must have an official appraisal to support your deduction.

References

• IRS: Charitable Donations
• Deducting Your Donations