Charitable Contributions - What is and is Not Deductible

Charitable Contributions - What is and is Not Deductible

I often receive questions from clients and readers about what can and cannot be deducted as a charitable contribution on Schedule A.

The following items are not deductible:

* Contributions made directly to an individual or family, regardless of the recipient's financial situation or health status.

* Contributions to an organization created to lobby for changes to federal, state or local laws.

* Contributions to political organizations or election campaigns.

* The value of blood donated.

* The value of your time to perform volunteer services.

* Contributions to non-profit homeowner or condo associations, or social or sports clubs.

* Contributions to foreign organizations.

* Raffle tickets. These can, however, be deducted as gambling losses if you have any gambling winnings to report.

* The rental value of the use of a vacation property donated to charity for a "vacation auction".

* Appraisal fees to determine the value of donated property (required if the value of the item donated is more than $5,000.00). These fees can, however, be deducted as a "miscellaneous deduction" subject to the 2% of AGI exclusion.

You can deduct:

* Cash or property given to a qualified tax-exempt organization created or organized in the United States or any possession under the laws of the United States or any state or possession (special rules apply for donating a car to charity - but that is a topic for another article).

* Out-of-pocket expenses connected with donations or volunteer service to a qualifying church or charity, such as the cost of the ingredients of homemade cookies or a cake donated to a church bake sale, or the cost and laundering of uniforms for a scoutmaster.

* Travel and transportation expenses incurred while performing a volunteer service for a qualifying church or charity. If you use your car you can deduct 14 cents per mile in lieu of actual expenses plus any parking fees and tolls.

* That portion of the cost of a ticket to a fund-raising event that is in excess of the "fair market value" of any goods or services you receive. If you buy a ticket for a fund-raising dinner, and the cost of the dinner is $35.00, you can deduct only $65.00.

Robert D Flach is a tax professional with 34 tax seasons of experience preparing 1040s for individuals in all walks of life. He writes THE WANDERING TAX PRO weblog (http://rdftaxpro.tripod.com/weblog), the free monthly online newsletter STUFF AND SUCH (http://rdftaxpro.tripod.com/stuffandsuch) and the website http://www.robertdflach.net, with a wealth of tax planning and preparation advice and information. The above article is taken from a posting to THE WANDERING TAX PRO.