Generally, a charitable gift is considered to be a voluntary gift of cash or other property (such as real property, stocks and bonds, mutual funds) to, or for the use of, a qualified organization. Under Internal Revenue Code Section 170, a taxpayer is allowed an income tax deduction for such gifts made in the course of the taxable year.

• Under current IRS regulations, only donors who itemize may take a charitable deduction.
• For gifts of cash, the donor may take a charitable income tax deduction up to 50 percent of adjusted gross income and excess deductions may be carried over for up to five years.
• For gifts of other property (not cash), donors may claim a charitable income tax deduction equal to fair market value up to 30 percent of adjusted gross income and excess deductions may be carried over for up to five years.
• Gifts of real estate and certain non-marketable securities over $5,000 must be appraised to determine fair market value for tax deduction purposes.
• Generally, gifts of tangible personal property (autos, artwork, etc.) over $5,000 must be appraised to determine fair market value.