| You can deduct donations made to qualified | | | | organization to buy real property at a bargain |
| charitable organizations only in the year you | | | | price, you cannot claim a deduction until the |
| actually make them. Usually, you make a donation | | | | organization exercises such option. |
| at the time of its unconditional delivery according | | | | 7. Borrowed funds - If you make a donation with |
| to IRS. | | | | borrowed money, you can claim a deduction in |
| | | | the year you make the donation, irrespective of |
| 1. Donations by checks - If your mail a check to a | | | | when you repay the loan. |
| charitable organization, the date when you mail | | | | 8. Conditional gift - If you make a conditional gift |
| the check is considered to be the date of | | | | depending upon a future act or event that may |
| donation. | | | | or may not take place, you cannot claim such a |
| 2. Donations by credit cards - The date on which | | | | deduction. |
| the contributions are charged to your credit card | | | | Example -You make a cash donation to a school, |
| account is the date of donation. | | | | to build a school. The school accepts the donation |
| 3. Donations by using Pay by phone account - If | | | | on the condition that if it fails to collect enough |
| you use A Pay by phone account to make | | | | money to build the gym, it would return your |
| donations, the date on which the financial | | | | money. In this situation there is a chance of |
| institution pays the amount is the date of your | | | | refund and you cannot claim deduction of your |
| donation. You should use the statement sent by | | | | gift as it charitable contribution. |
| the financial institution as the proof of donation. | | | | If there is only a negligible chance that the act or |
| 4. Stock certificate - If you donate stock | | | | the event will not take place, you can claim that |
| certificates, the transaction is supposed to be | | | | deduction. |
| completed on the date of mailing properly | | | | Example - If you donate land to act for making a |
| endorsed stock certificate. However if you hand | | | | public park, and the city does plan to use the land |
| over a stock certificate to your agent or to the | | | | for a park, then there is very negligible chance of |
| issuing corporation for transfer to the name of | | | | the land being used for any other purpose. So |
| the charity, the donation is not completed until the | | | | you can claim your deduction for such a donation. |
| transfer is completed. In this case, and the date | | | | Remember, if you claim the charitable contribution |
| of transfer will be considered as the date of your | | | | deduction in the wrong year, IRS will not only |
| donation. | | | | disallow it but can levy severe penalties on |
| 5. Promissory note - If your issue and deliver a | | | | under-payment of tax. So you need to be careful |
| promissory note to a charitable organization, this | | | | about the year in which you should claim a |
| is not a donation until the actual payment is made. | | | | donation. |
| 6. Option - If you allow an option to a charitable | | | | |