Itemize Deductions

• In order to take a deduction for the amount you give to charity, you must itemize your deductions. If the amount of your itemized deductions is less than the standard deduction provided by the IRS, you will not be able to get credit for any money you donate to charity. The standard deduction for 2010 was $5,700 for single filers and $11,400 for married couples filing jointly. Of course, the inability to take a charitable deduction on your taxes is not a reason to avoid giving to charity; but if you plan on making a large charitable donation, it is a good idea to see if itemizing your deductions will save you money on taxes. Just download a copy of Schedule A from the IRS website and run the numbers.
  
  

Cash Contributions

• You can take a deduction for the amount of money you donate to charity each year so be sure to keep copies of each canceled check. Many people make charitable contributions on an ongoing basis, often writing a check each month to a civic organization, health care charity or other cause. Keeping records of how much you contribute and when you make those contributions will make it a lot easier to prepare your Schedule A and your 1040 form when you do your taxes.
  
  

Non-cash Contributions

• The items you no longer need can be very valuable to someone else, and many people find donating their old household goods to charity worthwhile. If you do have household goods, clothing and furniture to donate, your first step should be to set up an appointment with the charity you plan to donate to. You will need to donate the goods in person in order to get the receipts and paperwork you need to file your taxes. The person taking the items on behalf of the charity should be able to provide an estimate of the fair market value of your donation, and you can use that information when you file your taxes. Some charities will even pick up your donations at your home and provide you with a receipt on the spot. Just call the charity you want to donate to and ask about pickup options.
  
  

Keep Receipts

• Whether you give cash or goods to your favorite charity, you need to get a receipt for every donation you make. If you make a cash donation, save any acknowledgment you receive from the charity. If you give appreciated stock or other securities, make sure you have all of the records showing when you purchased the securities and how much you paid for them. If you give clothing, furniture, household items and other goods, make sure you get a receipt from the charity that clearly shows the fair market value of the goods you donate. Keep all of these receipts and records with your other tax paperwork in case a question arises about the value of the charitable deductions you claimed on your past tax returns.