But what should the average taxpayer donate, and what value should be placed on those noncash items?

Kelly Sandridge, the community relations director of Goodwill Industries of the Valleys, reminds would-be donors that donated items must be in good shape. And not just for Goodwill, but everywhere.

"The key is 'gently used,' because the IRS requires that," Sandridge said.

The IRS placed this charitable restriction on donated items starting in 2006, according to Gil Charney, principal tax researcher of H&R Block. "The number one piece of advice is documentation," Charney said.

Whether it's quarters tossed into a Salvation Army bucket or food taken to a local soup kitchen, anyone who plans to itemize donations on their tax forms must have a receipt. Writing a check would help, as it provides automatic documentation, Charney said.

As for placing a value on that box of old shoes or last year's wardrobe, head to the IRS Web site for guidance and guidelines. Charney said that publications 561, 526 and 17 can be the most helpful in placing value on donations.

Goodwill recently began a computer donation program in October. Partnering with Dell, Goodwill recycles any donated computers. This new program makes those older, larger models more profitable to Goodwill, as Dell pays for these items per pound.

Every Goodwill donation center also will accept vehicles. The only stipulation is that each vehicle must be able to be driven to the donation center. In Roanoke, Goodwill holds four auctions every year. The price that the vehicle is auctioned for usually determines its monetary value for tax purposes. Sandridge said that an auction is planned for Jan. 10 at Roanoke Auto Auction and is open to the public.

The National Kidney Foundation accepts vehicles, too, but these vehicles can be towed to the drop-off location. Mullins Used Auto Parts is the car agent for the foundation in Roanoke and handles the donation process including paperwork for both the foundation and the donor.

Nicole Shackleford, the foundation's regional director for Southwest Virginia, said that a $500 value can be placed on a donated vehicle if it is sold for parts.

Charney said anyone making donations of more than $500 will have to fill out form 8283 and be prepared to answer more questions from the IRS about how value was placed on the donated noncash items. He even suggests taking pictures of these items.

"A contribution is a personal thing," Charney said. "However, if you don't itemize on your tax return you cannot deduct the contribution."

Donate wisely
If you donate by mail, it must be postmarked Dec. 31 or earlier in order to benefit your 2008 taxes.

Several companies have designed computer software to help place cash value on donations made throughout the year. Offerings include H&R Block's Deduction Pro, Turbo Tax (the deluxe version) and Charity Deductions (from www.charitydeductions.com).

Make sure you are donating to a charitable organization registered with the IRS. For more information go to www.irs.gov/ charities/article/