Charitable contributions are deductible only if you itemize deductions
on Form 1040, Schedule A (PDF).
To be deductible, charitable contributions must be made to qualified organizations.
Qualified organizations include, but are not limited to, Federal, state, and
local governments and organizations organized and operated only for charitable,
religious, educational, scientific, or literary purposes, or for the prevention
of cruelty to children or animals. Organizations can tell you if they are
qualified and if donations to them are deductible.
If your contribution entitles you to merchandise, goods, or services, including
admission to a charity ball, banquet, theatrical performance, or sporting
event, you can deduct only the amount that exceeds the fair market value of
the benefit received.
For a contribution of $250 or more, you can claim a deduction only if you
obtain a written acknowledgment from the qualified organization. You generally
can deduct your cash contributions as well as the fair market value of any
property you donate to qualified organizations. The fair market value of most
household or personal items is generally much less than the price paid when
new. You should claim only what the item would sell for at a garage sale,
a flea market, or a second hand or thrift store. You must fill out Form 8283 (PDF) Section A, if your total deduction
for all noncash contributions is more than $500. If you make a contribution
of noncash property worth more than $5,000, generally an appraisal must be
done. In that case, you must also fill out Form 8283 Section
B. Attach Form 8283 to your return. For more information on
this requirement, refer to Publication 526.
Generally, if property you contribute increased in value while you owned
it, you may not be able to deduct its full value. Refer to Publication
526. You may have to make an additional computation which includes the
property's cost to determine the deductible amount of your contribution.
Contributions you cannot deduct at all include contributions made to specific
individuals, political organizations and candidates, the value of your time
or services and the cost of raffles, bingo, or other games of chance. You
cannot deduct contributions that you give to qualified organizations if, as
a result, you receive or expect to receive a financial or economic benefit
equal to the contribution.
Although you cannot deduct the value of your time or services, you can
deduct the expenses you incur while donating your services to a qualified
organization. If the expenses are for travel, which may include transportation
and meals and lodging while away from home, they may be deducted only if there
is no significant element of personal pleasure, recreation, or vacation in
the travel. Actual costs of gas and oil can be deducted, or you can choose
to take 14 cents per mile for using your own car.
Deductions for contributions in excess of 20% of your adjusted gross income
may be limited depending on the type of property or the type of organization
the donation is contributed to.
For more information, refer to Publication 526, Charitable
Contributions, and for information on determining value, refer to Publication 561, Determining the Value of Donated Property.
