Charitable contributions can consist of direct or "outright" gifts of cash or property, such as publicly traded stock, real estate and furniture. You can also set up various types of trusts to benefit charity.

According to Houston Financial Advisors, Richard J. Alphonso, JD, CPA/PFS, M.S.T. and C. Randy Scott, CPA, some considerations to keep in mind for making donations include:

• Before making a cash donation, consider making a gift of a highly appreciated security, such as stock, that you’ve held for more than 12 months. This approach allows you to avoid paying capital gains tax that would be due if you'd sold the security. It also lets you deduct the total current value of the security from your taxable income. So, you're better off donating $1,500 in securities that may have cost you $500 on your initial investment, than in giving $1,500 in cash.
• Many cities have community foundations that will assist you in the process of contributing appreciated securities. Check with your local Chamber of Commerce to see if one exists in your area.
• Retain acknowledgements (receipts) of your donations for your records. The IRS requires copies of acknowledgements from charitable organizations for donations more than $250.