Helping others can also help yourself with your taxes.  Here are seven ways to maximize your deductions:

1.    Load up on donations at year-end.  The holidays are a traditional time to give gifts to charity and with good reason.  Not only do you help a deserving cause, you get immediate tax gratification:  The gifts you give during the holiday season reduce your tax bill on April 15.  Note that charitable donations are deductible only if you itemize deductions.

2.    When in doubt, charge it.  Usually, you will make contributions to charities by check or in cash, but you can also charge donations via a valid credit card.  Any amount posted to your December bill is deductible on your return - even if you don't actually pay off the charge until the following year.

3.    Give away stock instead of cash.  If you have stocks or mutual funds that have accumulated unrealized gains, and you have owned them for more than one year, you can receive a charitable deduction for the full fair market value of the stock without paying tax on the capital gain.  The more unrealized gain you have in the security, the more this tax break is worth.  In effect, you are deducting an amount that would have been paid to the government as a capital gains tax.  CAUTION:  If you have a loss in your stock, you should sell the stock to recognize your loss and donate the cash to the charity.  If you donate a stock that has declined in value, your donation will be limited to the reduced value and you will not be able to deduct your economic loss.

4.    Donate your old car to charity.  Donation of an auto, boat, or airplane valued at more than $500 must be acknowledged by the charity on Form 1098-C which you are required to attach to your return.  Usually your deduction will be limited to the amount that the charity realized when they sold the donated property regardless of fair market value.   

5.    Be careful with gifts of art.  A special tax rule comes into play when you donate art or collectibles to a charity.  If the charity does not use the gift to further its tax-exempt function, your deduction is limited to the property's basis instead of its fair market value.  For example, if you donate a painting to your alma mater, you should specify in writing that the painting must be hung where students can easily view it and study it.

6.    Deduct expenses while doing volunteer work.  You are allowed to deduct the expenses incurred while performing volunteer work for a qualified organization.  For example, if you travel by car on behalf of a charity, you may deduct your charity-related auto expenses or take a standard deduction of 14 cents per mile.  Other deductible expenses include uniforms, supplies, meals and lodging, and all other expenses incurred on behalf of the charity.

7.    Don't forget the tax benefits of a fundraiser.  If you buy a raffle ticket, attend a charity ball, buy something in a silent auction, you are allowed to deduct, as a charitable donation, the difference between the amount you paid and the actual value of the goods or services you received.  For example, if you buy $100 of raffle tickets for an auto, and the statistical value of those tickets is $20, you are entitled to a deduction of $80.

CAUTIONS

    A.    You must have written acknowledgement from the charity for donations that exceed $250.  The acknowledgement should state that the donation is net of anything of value received by the donor with the exception of spiritual value. A cancelled check is not, by itself, acceptable.  Gifts made through payroll deductions are supported by a final pay stub or W-2 for the year.

    B.    If you donate property valued at $5,000 or more, you are required to obtain an appraisal by a qualified, licensed,  appraiser. 

    C.    Donations to political parties or candidates are not deductible.

   D.    If you gift is substantial, be sure that the charity is a qualified charity.  There are many non-profit organizations that are not qualified to receive deductible gives.