Tax Tip: Charitable Donations

The IRS has changed the reporting and record retention requirements of gifts to charity. This new rule takes effect in two stages.

Contributions of clothing or household items made after August 17, 2006, are generally not deductible unless the item is in good used condition or better.

In 2007, monetary donations will not be deductible unless you have a bank record, credit card statement or receipt that shows the name of the charity and the date and amount of the contribution.