If you give money or non-cash donations to charity, you’ll be interested in some of the provisions of the new Pension Protection Act.

There are two changes affecting charity:  the first is that you are now required to maintain written documents for any cash gifts in order to claim a deduction.  Most churches will send you a statement at the end of the year, if you use the envelopes provided, or write a check.  But gone are the days of dropping cash into the collection plate or the Salvation Army bucket.

Second, if your donated non-cash items aren’t in "good" condition, you won’t get a deduction.  This is to keep people from taking large deductions for items that really belong in the trash.  Of course, no-one has defined what "good" condition is yet, so use your common sense when donating items.

Resources:
New pension law closes loopholes in charity deductions – LA Times
The Pension Protection Act of 2006 offers retirement tax breaks, tough rules on charity – About.com