New Rules for Charitable Giving in 2007
by Karen Winter

More stringent rules are being enacted in 2007 and it is important to remember to collect all receipts for charitable donations. To make your recordkeeping easier, try implementing these ideas:

• Give less cash, instead use your credit card and/or a check.
• If you do use cash, always ask for a receipt.
• Always make sure the organization is a qualified charity verified by the Internal Revenue Service.
• Non-cash donations of household items and clothing must now be in good or better condition. It is a good idea to take pictures of what you are donating to verify the deduction.
• For 2007, you can now donate your IRA minimum distribution if you are over 70 1/2 years old. If you do not need the money from your required withdrawal and you make your distribution directly to the charitable organization, you're IRA distribution will not be counted as income. You also may not take a charitable donation, but this a great way to actually make a charitable donation, have it count, without having to qualify for a Schedule A, itemized deductions.

Karen Winters, LTC

HOYER ACCOUNTING
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Cottage Grove, OR 97424
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