How to Maximize Your Charitable Donations for Tax Purposes

Every year I hope and expect to get a large tax refund when March comes around. We usually use our refund for a much-needed home improvement or a fun, family vacation. I do my best all year to keep track of paperwork, receipts, medical premiums and bills, and of course, my charitable donations.

I used to save all of my household items and clothes that I wanted to get rid of until the spring and then have a huge garage sale. Year after year, I realized that I do not make that much money and in fact probably lose money if I figure all of the time and energy it took to prepare and host a garage sale. Selling clothes for 50 cents or $1 doesn't bring in the big bucks!

So, I decided to gather all of my household items and clothes that my children had outgrown and my husband and I had not worn in a while and donate them to a local charity. Several years later, I am on just about every donation list in our area - which is fine with me. I get at least one call every month asking if I have anything to donate even if it is only one bag of items. Well, I can usually come up with a bag of stuff to give away. I know if an item has not been used in a while by me, then there is someone out there who can make use of it. I figure that my things just sitting in the closets or storage boxes will help someone in need. If I don't have time to gather items, then I just tell them I don't have any at this time, but they can keep me on the list and call again.

Here are some tips to help you make the most of your charitable donations. When the time comes to do taxes, you will have everything you need to maximize your charitable donations and increase your tax refund.

Charitable Donation Tip #1: Keep a large garbage bag or box accessible to put things in throughout the month. If you wait until it is time to clean out, you will be overwhelmed and possibly never gather items to donate. I am amazed at how many people throw good, usable items in the trash because they do not want to deal with it. Some charities will send you a bag periodically to use for your donations.