If you prefer,

you may call 1-800-829-3676 to receive a free copy of Publication 78,

Charitable Contributions: A Cumulative List of Organizations .

Because gifts

to qualified organizations are tax deductible, your actual cost for the

donation is reduced by your tax savings. For example, if you are in the

28 percent tax bracket, the actual cost of a $100 donation is $72 ($100

less the $28 in tax savings).

TIMING AND

CONTRIBUTION LIMITS ARE IMPORTANT

A contribution

is deductible in the year you make it. As long as you date your check

in 2000 and mail your donation by December 31, 2000, you can deduct your

contribution on your tax return for 2000, even if the charity does not

receive your check until January.

Similarly,

a contribution made on a credit card before year end is also deductible

on your 2000 tax return, even if you don't make payment to the credit

card company until the next year.

Under current

tax law, you may deduct up to 50 percent of your adjusted gross income

(AGI) for gifts of cash to most charities. If you give more than 50 percent,

the excess may be carried forward into the next tax year.

Lower limits

may apply to contributions to certain types of organizations or for certain

contributions of property. LARS

Cash isn't

the only way you can help your favorite charities and get a tax break.

In fact, when you donate property that has appreciated in value, you stand

to save even more. That's because you get a deduction for the full fair

market value of property you have held for longer than one year, and you

avoid paying capital gains tax on the appreciated value.

The deduction

is limited to 30 percent of your AGI. Any excess amount may be carried

over five years. For example, suppose stock you bought four years ago

for $5,000 is now worth $15,000. First, you get a deduction for the full

$15,000 fair market value and, second, you are not taxed on the appreciation.

In effect,

you receive a deduction for an amount you never reported as income.

For traditional

non-cash donations (i.e., clothing or furniture) you can deduct the market

value of the gifts - what you might pay for them in a consignment shop.

For contributions

of less than $250, your canceled check is a sufficient record of payment.

However, for

contributions of $250 or more, you will need a written acknowledgment

from the charity showing the organization's name and address, the date

of the contribution, and the amount of your cash contribution or a description

of the property you donated.

The letter

must state whether or not you received any goods or services in return

for your gift.

It is the responsibility

of the organization to inform you of the non-deductible portion of your

donation. This will be provided in the written acknowledgement from the

charity.

For example,

when you buy a ticket to a benefit concert or dinner dance, you can deduct

only that part of the ticket price that exceeds the cost of the entertainment

or dinner that you attend.

For property

donations that exceed $500, you must attach Form 8283, Non-cash Charitable

Contributions to your return. If the value of the donated property

is over $5,000, you need a written appraisal from a professional appraiser.

(There are no appraisal requirements for publicly traded securities for

which market quotations are readily available. Non-publicly traded stocks

valued at $10,000 or less are exempt from the appraisal requirement.)

Taxpayers who

plan to contribute large sums to charitable organizations should consult

a CPA to discuss additional tax-savings strategies.

The GSCPA is

the premier professional organization for CPAs in the state of Georgia.

With over 10,000 members throughout the state, the purpose of the GSCPA

is to promote the study of accountancy and applicable laws, provide continuing

professional education, maintain high ethical and work standards, and

provide information about accounting issues to the membership and the

public. For more information, access our web site at www.gscpa.org.

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