donations

If you were particularly giving in 2012, then you can look forward to a smaller bill come tax time. Read these tips from Kathy Pickering, executive director of The Tax Institute at H&R Block:

Itemizing Deductions: To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A.

Note the Date of the Donation: To be able to deduct contributions on your 2012 return, you must have completed the donation by Dec. 31, 2012. A bank record or receipt is needed for all cash donations of less than $250; cash donations of $250 or more require written confirmation from the charitable organization. Additional substantiation requirements apply to cash donations of over $500 and to all noncash donations.

In general, the deduction for donations of stock or other noncash property is usually the fair-market value of the property. Clothing and household items must generally be in good condition to be deductible. Special rules apply to the donation of vehicles.

Qualified Nonprofit: To qualify for a tax deduction, you must be giving to a qualified tax-exempt charitable organization. You cannot deduct contributions made to specific individuals, political organizations, or candidates.

Deduct Benefits: If you receive a benefit in return such as tickets to a game or merchandise, then you can deduct only the amount of the donation that exceeds the fair-market value of the benefit received. Written acknowledgements should state the value of any goods or services received for your donation.

Microsoft Bing quickly backed away from their Japan Quake Twitter campaign once the outrage began from Twitter users. On Saturday, its official Twitter account, @bing, said they would donate a $1 for every retweet they get of their pledge to donate up to $100,000.

Some users started fuming and saw it as "exploitation" of tragic events happening in Japan. "just write the goddam cheque and cut out the spam. What do you need to be lauded for the humanitarian aid?" tweets @jonhoneyball.

I can understand why Bing's efforts can be seen as negative and they probably didn't pick the best way to address the issue. The situation is so sensitive that public backlash is easily triggered. Keep in mind that Bing's ultimate intention is positive, and it's heartwarming to see companies doing something for the tragedy. Remember what Bill Gates, the man behind Microsoft, has done for philanthropy. His foundation is the biggest one in America, and the only reason that his Forbes billionaire ranking dropped is because of his efforts to give away his wealth to charity.

Now's the time for people to come together and not to spew negativity. If you're looking do your part, read our tips on the smart ways to donate. Going back to the topic of Bing's marketing debacle — do you think it was a PR fail or nice (albeit a little misguided) show of support?

It's extremely frustrating to feel helpless. And that's how I felt when I watched images of the horrifying tragedy in Japan flash across my TV screen. I'm sure hundreds of thousands, if not millions, share similar sentiments. When a disaster first hits, the urge to give aid can sometimes be overwhelming, and many will rush to donate. However, that's not always the wisest approach.

Many of you have probably chosen to go with the Red Cross because that seems to be the go-to charity that everyone from Britney Spears to CNN is promoting, but there are actually other really great options as well. It's crucial to check the history of nonprofits in Japan to make sure the donations are actually being put to proper use, and picking NGOs that understand the infrastructure of Japan is really important. A savvy alternative would be the Salvation Army, which is an NGO that has been in Japan since 1895 and has set up more than 80 centers. Read on for tips on the best way to donate to Japan.

If you're mulling over what cause to donate to, you can consider chipping in towards the $14 trillion national debt. Be warned that the stark contrast between the massive debt and the amount you decide to give may make your donation feel measly, and frustrations may ensue if you disagree with what the government is spending money on.

The Treasury Department has been collecting donations since 1996, and their most fruitful year was in 2009, when they received a total of about $3 million. According to The Consumerist, your monetary goodwill towards the mounting US debt isn't tax deductible, so be sure to keep that in mind as well. To make things convenient, the Treasury Department accepts payments from credit cards, checking and savings accounts. If you want to send in a check, make it out to the "Bureau of the Public Debt," and list "Gift to reduce the Debt Held by the Public" in the memo section.

Would you consider donating to the US Treasury?