According to Houston Financial Advisors Richard J. Alphonso, J.D., CPA/PFS, M.S.T., and C. Randy Scott, CPA, tax deductions for charitable contributions are limited to a percentage of your adjusted gross income (AGI). This percentage is determined by the type of donation.

�        Cash gifts. Deductions for cash for cash contributions can�t exceed 50% of your AGI for the taxable year. For example, if your AGI is $200,000 and you donate $120,000 cash to charity this year, your deduction will be $100,000. Any amount not allowed in the current tax year may be carried forward 5 years.

�        Gifts of appreciated property. These are usually deductible at their fair market value on the date of the contribution. So, 500 shares of publicly traded stock worth $36,000 would give you a charitable contribution of $36,000. However, your deduction from this appreciated property usually can�t exceed 30% of your AGI. Also, you must reduce your deduction by the potential long-term capital gain (appreciation) if you make your donation to certain private nonoperating (grant-making) foundations (excluding gifts of appreciated stock); or the gift consists of personal property that will be put to a use unrelated to the organization�s function.