Thinking that a donation will always be tax deductible is one of the biggest wrong assumptions made by most people. This assumption arises from the fact that most people do not understand how charity and taxes are related. It is a complicated process but can be managed with some basic knowledge and an understanding of tax in your state.

Here are some ways in which you can make your charitable donations tax deductible.

• Itemize the donation: In order to claim a donation on your tax return, you should itemize your deduction on the Schedule A of the Federal Form 1040.

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• Ask for a receipt: Donation receipts are a must when claiming a deduction for a donation. So, whenever you donate, ask for a receipt from the organization you are donating to. Ask for a receipt for all types of transactions including online and cash donations. This receipt must clearly show the name of the organization, date on which the donation was made, and the donated amount.
• Be aware of payroll deductions: Sometimes employers participate in a charitable program and they transfer the tax benefit to the employees who contribute to a charity. If you can make a contribution through payroll deduction, you can save on the tax through your employer. Always remember to ask for form w-2 from the employer that shows the total amount that is withheld from your salary as a charitable donation, along with a pledge card.
• Ask for the value of the donor incentive: If you donate something to a charity and you get something in exchange, you can get a tax deduction on the amount after deducting the price of the gift from the charity amount. For example, if you donate $100 to a charity and get a $4 t-shirt in exchange, you can get a tax deduction on $96 only.

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