by KYW's Salil Gutt
There have been significant changes in the rules and regulations surrounding charitable gifting. Here's an update.
Cash gifts. Donors are not allowed to deduct cash gifts no matter how small unless there is a paper trail to prove it. A bank record or a canceled check is what the IRS is looking for. Many churches for instance are amending their procedures so that they bill parishioners for pledges made rather than the giving of cash at church services. Household items need an appraisal if their value is over $500.
Used cars. You can only deduct the money actually received by the charity after the middlemen have sold the car. The one exception to deducting fair market value is if the charity gives or sells the car to a needy individual.
Stock donations. Only donate stock that has appreciated sharply and certainly do not give stock where you have a loss.
And finally. Volunteers can deduct the car mileage driven for charitable work at the rate of 14 cents a mile. You cannot deduct the value of your time or services to the charity.
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