In most cases, the deduction for charitable contributions is limited to 50% of a client’s adjusted gross income – BUT… in some cases 20 and 30 percent limits may apply.

• Fact: Charitable contributions must be made to qualified organizations and not set aside for use by a specific person. Payments to individuals are never deductible.
• If you received a benefit – as a result of making a contribution to a qualified organization – you can only deduct the amount of the contribution that is more than the value of the benefit you received.  In other words, if you made a contribution – that entitled you to merchandise, goods or services – including admission to an event such as charity ball, banquet, theatre performance or sporting event, you can only deduct the amount that exceeds the *fair market value* of the benefit you received.
• Keep Good Records.  Contributions of $250 or more to any single charity requires the charity’s acknowledgment or written statement containing:
  – Name of organization.
  – Amount of cash contribution.
  – Description (not the value) of the noncash contribution.
  – Statement that no goods or services were provided by the organization in return for the contribution, if applicable.
  – Description and good faith estimate of the value of goods or services, if any, that an organization provided in return for the contribution.
  – Statement that goods or services, if any, than an organization provided in return for the contribution consisted entirely of intangible religious benefits, if that was the case.

Source: Tax News, 2013