Most people know that they must have cancelled checks or receipts to document cash donations to religious and charitable institutions in order to claim a tax deduction. Indeed, for contributions over $250, a detailed receipt is a must, indicating that the donor has received no benefit from the donation.

For non-cash contributions, the rules are even tighter. Beyond a detailed inventory for donated property, a qualified written appraisal must be offered for gifts over $500 and that appraisal must come from an outside expert.

Recently, a deduction for a donation of real estate worth millions was completely disallowed because the donor, himself a qualified appraiser, submitted his own valuations. In addition, the required paperwork was somewhat faulty. Though the charity later sold some of the properties at prices close to or above his appraisal, indicating its accuracy, the deduction was disallowed.

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