How many times has it been that you have not filed your income tax properly? Just to be able to save some money from the government you risk going behind the bars. Why take such pains when an easier method of saving tax from the government is available and which is also completely legal. Simple, you donate to a charity.

If you donate to a charity then you can save on your tax bills. There are a few rules though that you must keep in your mind so that your contributions to a charity are recognized. The donation must pass a certain criteria so that the Australian government can exempt tax on it. You must actually make a donation to a charity and only a promise to donate to a charity does not count for tax exemption. The charity you donate to must be having a tax - exempt status otherwise tax will not be exempted. Some organizations such as churches and other religious organizations do not need to have such a status. Although giving to charities is a great tax saving strategy, but for that to happen you have to be able to itemize your deductions. A record of all such donations must be kept.

These records include canceled checks, acknowledgment letters from the charity, and appraisals for donated property. People who pay taxes have to keep accurate records of the charitable contributions they have made.

Under the Pension Protection Act, a written record of all cash donations must be kept. Donations of $250 or more than that will not be allowed as a tax deductible unless a supporting documentation can be provided along with them.
Your records must clearly indicate the name of the organization, the date you made the contribution, and the amount or the item you contributed. Contributions of property or other items (other than cash) should be recorded accurately and are subject to substantiation rules. You must substantiate the fair market value of the goods or property you donated, plus keep any written acknowledgments you receive from the charity.

Donating to charities proves to be a successful method of saving taxes from the government but this method also involves accuracy in keeping records because the government asks for every small record. In this way peoples both problems of donating to charities and saving taxes are solved. It's like killing two birds with one stone.