IRS Year-End Donation Pointers Individuals and businesses making year-end charitable contributions should keep in mind several important recent tax law provisions. First, remember that IRA owners age 70½ or older can directly transfer tax-free up to $100,000 per year to an eligible charitable organization, regardless of whether the owner itemizes his deductions. This option, created in 2006, recently was extended through 2009. Distributions from employer-sponsored retirement plans are not eligible, and funds must be contributed directly by the IRA trustee to the eligible charity. Donor-advised funds and supporting organizations are not eligible recipients. With regard to donations of clothing and household items, the items must be in good used condition or better, or have a qualified appraisal. To deduct any charitable donation of money, a taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. Additional reminders include the following: (1) contributions are deductible in the year made (date the check is mailed or the credit card is used); (2) be sure that an organization is qualified in order for a donation to be tax-deductible; (3) for individuals, only taxpayers who itemize their deductions on Form 1040 Schedule A can deduct charitable contributions; and (4) if the amount of a taxpayer’s deduction for all non-cash contributions is over $500, a properly-completed Form 8283 must be submitted with the tax return.