Page 10 THE VILLADOM TIMES III • December 25, 2013 Business ’Tis the season to make year-end contributions Along with the avalanche of catalogues and holiday greetings from family and friends, mailboxes are now being inundated with donation requests from charitable organizations. This is the time of year non- profit organizations ramp up their efforts to raise money before the end of the year. It is also a great time for taxpayers to donate to charity and receive a tax break in return. Regardless of whether you’re donating to your favorite charity or giving to a new organization this year, follow these tips to ensure everyone benefits from the dona- tion: Research first. Only donations to quali- fied charitable organizations are deductible. If you’re not sure whether an organization is qualified, ask to see its letter from the Grand Reopening Rite Aid at 60 Franklin Turnpike in Waldwick recently held a Grand Reopening of its newly remodeled ‘Wellness Store,’ which features expanded services and products. On hand at the ribbon cutting were Store Manager Jose Garcia, Pharmacy Manager Ushma Trivedi, Well- ness Ambassador Shelia Smith, Beauty Advisor Chiarra Hughs, District Manager Daniel Puneh, Regional Vice President David Mahan, District Pharmacy Manager Elaine Richer, and Regional Pharmacy manager Mary Elmasri. Internal Revenue Service. Many organiza- tions post their letters on their websites. To search online, use IRS Exempt Organiza- tions Select Check. Churches, synagogues, temples, and mosques are considered de facto charitable organizations and are eli- gible to receive deductible donations, even if they are not on the list. Guidestar and Charity Navigator also include informa- tion about a charitable organization’s tax exempt status. Get receipts. Cash deductions must be substantiated by a bank record (such as a canceled check or credit card receipt clearly annotated with the name of the charity) or in writing from the organization. The writ- ing must include the date, the amount, and the organization that received the donation. It’s not necessary to submit the receipt as part of a tax return, but be prepared to show it in the event of an audit. Be an itemizer. To claim charitable deductions, they must be itemized on Schedule A of federal form 1040. Do the math. If something is given in exchange for a donation – no matter how big or small – the donation is deductible only for the amount the donation exceeds the value of any goods or services received. Document. Be sure to keep good records of all donations. If non-cash items are donated, be able to substantiate the value of the donation. Know your limits. There are limits on the amount of charitable contributions that can be deducted. The specific limitations can be fairly complicated, so consult a Cer- tified Public Accountant if the donations are more than 20 percent of the adjusted gross income. Keep an eye on the calendar. Donations must be made by the end of the tax year for which the deduction will be claimed. A check dated Dec. 31 that goes in the mail by that day is fine. The same goes for dona- tions charged by year’s end to a credit card – even if the bill won’t be paid until next year. Keep paystubs. If money is taken directly out of a paycheck for charity, keep a paystub, W-2, or other document showing the total amount withheld, along with the pledge card showing the name of the char- ity. Donate appreciated property. Taxpayers can donate appreciated property instead of cash to a charity, which yields double the bang for the buck because an individual can deduct the property’s fair market value on the date he or she gives the gift and avoid paying capital gains tax on the appreciation. The deduction of appreciated property is generally limited to 30 percent of adjusted gross income. To find more information about various personal financial matters, visit the NJSC- PA’s public service website at MoneyMat- tersNJ.com. Visitors to that website are also invited to subscribe to Your Money Matters, the NJSCPA’s free, monthly e-mail newslet- ter to receive valuable personal financial planning advice throughout the year.