IRS tightens charitable-gift rules-Charitable contributions are good for society and good for your tax bill. But the IRS is demanding more detail

Let's be honest.

Sometimes it really is better to receive. Indeed, the glory of a charitable contribution is that when you give, you get back as well.

Charitable donations are deductible. But, to get the deduction, you have to jump through a lot of Internal Revenue Service hoops. Tax provisions that took effect on Jan. 1, 2007, will increase the documentation all of us must keep in order to claim a charitable deduction.

How you win when you give
If you itemize your deductions for 2007, you get to deduct your charitable contributions. You'll itemize only if the total of your itemized deductions is greater than your standard deduction ($10,700 on a joint return, $5,350 for a single).

Congress has been talking about a charitable deduction for non-itemizers, but the provision has yet to be passed.

Each dollar you contribute gives you a tax benefit equal to your marginal tax bracket. Let's say you're in the 25% bracket. A $100 contribution saves you $25 dollars in tax. In the 35% bracket, you save $35. The real cost of your donation is only $65.

If you give more than 20% of your adjusted gross income (AGI) in any given year, you may start to be subject to deduction limits. How much? Let's say your AGI is $100,000, you spend practically nothing. and you have lots of cash that you want to give away to a fully accredited charity. Under that scenario, your deduction for the year would be limited to 50% of your AGI or $50,000.

The rules on 20% limits are complicated and convoluted. If your generosity exceeds that amount, check Publication 526, "Charitable Deductions," or consult with a tax adviser. If your donations are that substantial, you may be able to get free guidance from the charity's professional development officers.