I received four charitable solicitations this week: one from my daughter’s school, one from my college, one from my law school and one from a local museum. No, word hadn’t gotten out about my new blogging gig, charitable organizations come calling about this time every year – and why not? Despite all of the signs that warn us that there are 50 more days until Christmas… there’s an even more significant deadline for some: the year-end. Yep, in 56 days, your chances to incur additional deductions and exemptions for the calendar year 2006 are gone. Kaput. (Well, there’s still a chance to sock away some IRA money and get additional deductions, but that’s for another post.)
Charitable donations are a good way for many taxpayers to add a deduction or two and get a warm fuzzy or two in the process. However, for 2006, there are some changes. One of the most significant changes is that cash deductions regardless of the amount must be substantiated by a bank record (such as a canceled check or credit card receipt) or in writing from the organization. The writing must include the date, the amount and the organization that received the donation.
So yes, that does mean that the loose dollar or two that you put in the offering plate or in the Salvation Army box no longer counts towards your tax deductions…
My advice:
- Get a receipt. Just ask. If the organization is taking your money, they ought to be able to produce a receipt.
- Don’t give cash, use a check or credit card.
- And finally, don’t let the tax tail wag the dog. That fireman with the boot asking for some change? C’mon, be charitable. It is, after all, the spirit of giving that should really matter and not the deduction. But boy, that deduction is nice…