Fact: Donations of Used Clothing to Charity are Deductible
You may deduct the fair market value of used clothing you contribute to charity. The Internal Revenue Service (IRS) says that the fair market value of used clothing is the amount one would pay for these items in a thrift shop or second-hand clothes store. The same rule applies to donations of furniture and other household items. However, you must have a statement from the organization acknowledging the gift and describing the property.

Fiction: Your Canceled Check is Sufficient Proof
Your canceled check is sufficient proof only if the donation is under $250. However, if you make a single donation of $250 or more to a charity, you need a contemporaneous written acknowledgment from the organization. Note that this rule applies only to a single donation. There is generally no need for you to get written confirmations if you make five separate $100 donations to the same charity, even though the aggregate amount exceeds $250. However, anti-abuse rules apply. You have until the filing due date of your return to obtain the written acknowledgment.

Fiction: Services You Perform on Behalf of Charities are Deductible
The value of your services is not deductible, but your volunteer efforts do entitle you to deduct the cost of unreimbursed out-of-pocket expenses, such as the cost of stationery, postage, and telephone calls, you incur on behalf of the charitable organization. Under limited circumstances, allowable deductions also include travel expenses and a reasonable amount for lodging and meals. Just be sure to keep detailed records of your expenses.

Fiction: There is No Limit for Deductible Charitable Contributions
Be as generous as you like, but keep in mind that there are deduction ceilings for very substantial donations. The amount you can deduct depends on whether you donate cash or property and the type of charity to which you donate. For cash contributions, the deduction ceiling is generally 50 percent of your adjusted gross income, but, in some cases, a 30-percent limit applies. For appreciated property donations, the deduction limit is generally 30 percent of adjusted gross income. In any case, it is a good idea to consult with a CPA or other tax professional when making large charitable contributions.

Fact: Contributions of Appreciated Property Provide Additional Tax Benefits
The easiest way to contribute to a charity may be to write a check, but if you plan to make a sizable donation, you can save more in taxes by contributing property that has appreciated in value and qualifies as long-term capital gains property. That is because in addition to the deduction you earn for the contribution, you avoid paying the capital gains tax that would be due if you sold the investment yourself. It makes no difference to the charity; as a tax-exempt entity it will not incur the capital gains tax when it sells your gift.

Fact: If You Receive a Gift in Return for a Donation, Your Deduction is Limited
If you contribute $500 to attend a fundraising dinner for your church or synagogue, and the fair market value of the dinner is $100, your deduction is limited to $400-the difference between your donation and what you received in exchange. In such instances, the charity must tell you how much of your donation is deductible.

Fiction: The Cost of Raffle Tickets Is Deductible
There is no charitable contribution deduction for raffle tickets because you have a chance of winning something. The same holds true for state-sponsored lotteries.