Two of the factors to consider in year-end tax planning are your own financial situation and the tax rules that apply.  Congress is considering making changes before year-end that may impact your situation.  Some changes may include reinstating all or some tax breaks the expired in 2013.  If you wait to determine what changes may be passed for 2014 you may not have enough time to implement your year-end tax planning moves.

Start by identifying the charities you would like to make contributions to and the amount to each charity.  Remember to consider the amounts you already contributed during the year.

Check to see if you will be able to deduct the contributions if receiving a tax benefit is part of you motivation for making charitable deductions.  In order to deduct your contributions you must file a tax return (Form 1040) and itemize your deductions.   That is, you will not receive a deduction if your itemized deductions are less than the standard deduction.  The 2014 standard deductions is: $12,400 if you are married and file a joint tax return, $9,100 if you qualify to file as head of household, $6,200 if you are single, and $6,200 if you are married filing a separate return.  Both spouses filing a separate tax rerun must itemize their deduction if one spouse itemized their deductions.  It maybe beneficial to postpone deductions to the next year if you receive a greater tax benefit in the next year.

The total deduction for contributions is limited to a percentage of your adjusted gross income (AGI).  For example gifts to public charities are generally limited to 50% of your 2014 AGI.  Other limitations, 30% or 20%, apply depending on the nature of the contribution and the type charity.  Amounts not deductible may generally be carried forward over the next 5 years in years that you itemize your deductions , subject to the income percentage limitations.

Contributions can only be deductible if made to a qualified organization.  IRS has a listing on their website, Exempt Organizations Select Check: https://www.irs.gov/Charities-&-Non-Profits/Exempt-Organizations-Select-Check

To claim a deduction for donated cash or property of $250 or more, you must have a written statement from the organization.  Generally you can deduct the fair market value of property rather than cash or a check.

The above is not intended as a complete discussion of this subject.  A tax professional, can help you evaluate your situation, keep you appraised of any legislative changes, and determine the best approach for your individual situation.