In this day and age, charity encompasses many public benefits, like advancement of education and science, relief of poverty or distress, assistance to the government, promotion of health, elimination of prejudice and discrimination, defense of human and civil rights, advancement of religion, combating community deterioration and juvenile delinquency, and many others.

Of course, federal tax laws provide tax benefits to non profit organizations recognized as exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code. The benefits of 501(c)(3) status include exemption from federal income tax as well as eligibility to receive tax deductible charitable contributions.

The tax benefits can be particularly important for large donors who envision charitable giving into their overall financial plans, but even for individuals who have smaller amounts to give, tax deductions can be a nice plus.

If giving is among your to do list, some of the most important things you need to know about deducting charitable contributions include that:

• Charitable contributions are deductible only if you itemize deductions using Form 1040, Schedule A.
  

While there has been no limit on the amount of itemized deductions since 2009, an overall limit in itemized deductions (known as the Pease limitation after the congressman who helped create it) has been reinstated for 2013 for those taxpayers with adjusted gross income above $250,000 (individuals) and $300,000 (married couples filing jointly).

The re-instituted phase-out limitation on itemized deductions cuts the amount of deductions you can take by 3% of AGI above the specified thresholds but you cannot lose more than 80% of the affected itemized deductions. This means that tax payers whose AGI is greater than the specified income thresholds won’t be able to take all of the deductions associated with items like home mortgage interest, charitable donations and state/local income tax payments.

• Contributions must be made to qualified charitable organizations. Exempt Organization Select Check , a searchable online database available on IRS.gov lists most organizations that are qualified to receive deductible contributions. In addition, churches, synagogues, temples, mosques and government agencies are eligible to receive deductible donations, even if they are not listed in the database.
  

• Contributions are deductible in the year made. Thus, donations charged to a credit card before the end of 2012 count for 2012. This is true even if the credit card bill isn’t paid until 2013. Also, checks count for 2012 as long as they are mailed in 2012.
  

(1)	All public charities (code PC),
(2)	All private operating foundations (code POF),
(3)	Certain private foundations that distribute the contributions they receive to public charities and private operating foundations within 2-1/2 months following the year receipt, and
(4)	Certain private foundations the contributions to which are pooled in a common fund and the income and corpus of which are paid to public charities.

The 30% limitation applies to private foundations (code PF), other than those previously mentioned that qualify for a 50% limitation, and to other organizations that do not qualify for the 50% limitation, such as domestic fraternal societies (code LODGE).

The organizations listed in the IRS publication with foreign addresses are generally not foreign organizations but are domestically formed organizations carrying on activities in foreign countries. These organizations are treated the same as any other domestic organization with regard to deductibility limitations.

Charitable contributions may consist of cash or non-cash contributions, but in either case you need to keep the right records to substantiate your donation.

• For any cash contribution you need a receipt or corroborating bank record that includes the date, amount, and name of the charity.
  

• Non-cash contributions also require documentation. For a donation over $250, you need a receipt that shows the organization's name, date and place of the contribution, and a description of what you gave. If your combined contributions for the year are over $500, you'll need to file Form 8283 with your taxes; for non-cash contributions worth over $5,000, you need a written appraisal.
  

Non cash contributions may include:

• Ordinary income property: you can donate items created or used in a trade or business. For instance, an artist might donate a painting that would usually be sold for income. Stocks held for less than a year are included in this category. However, you can only deduct what you paid for the stock (up to 50% of your adjusted gross income), not the current market value.
  

• Long-term capital gain property: If you donate appreciated long-term assets such as stocks, bonds or mutual funds you've held for more than one year, you can usually deduct the full market value of your donation, up to 30% of your adjusted gross income. This amount is the average of the high-low price on the date of transfer. An added plus is that there's no capital gains tax.
  

Out-of-pocket expenses incurred in performing volunteer work for a charitable organization (including mileage deduction) are considered cash contributions.

Charitable contribution can become complicated, therefore, for any out of the ordinary situation (for instance if the property you donated increased in value, or if you receive something in exchange for your contribution, or if you retain some interest in the property you donate) be sure to consult a tax professional.

Regardless of any tax benefits, charitable giving is always a welcome, feel-good part in everybody’s life.