Tax Deductible Charitable Donations
The holiday season is officially underway and ‘tis the season to shop, buy, and give gifts to friends and family. It is also the time of the year where people give more thought and attention to the less fortunate. Most of us are familiar with the Santa—or these days, anyone ringing a bell alongside a red Salvation Army bucket, tugging at the hearts of those who are already in the giving mood. You may also see more commercials persuading viewers to give to their charitable organization.
For those generous givers, did you know that you could write off some of your financial gifts off as a tax deduction? Well, you can!
Giving in Order to Receive
It may seem odd to expect to profit off of a donation, but it is done all the time. Some organizations will even issue you a receipt for this very reason. Others might take the approach of a for-profit business and issue an official charitable organization statement to you at the end of the tax year to use for tax purposes.
What Qualifies as a Charitable Contribution
Just because an organization is asking for money doesn’t mean that they are a non-profit organization. If you are donating finances to a business and expect to write it off as a tax deduction, it is recommended to research that company first to determine if it is for-profit. If so, then it is not legally considered a charitable contribution.
Here is a list of the types of organizations that the IRS considers as a tax-deductible contribution:
- Public schools
- Non-profit hospitals
- Religious Organizations
- Federal, state and local government businesses and/or anything going toward public purposes
- Non profit homeless shelters and food banks
- Veteran’s organizations
- Goodwill Industries
- Salvation Army
- American Red Cross
In short, as long as the organization is non-profit, it is considered a tax write-off.
Most of these organizations have arranged it so that you can give online. If this is the method in which you choose to give, then be sure to save your digital receipt. You can even be eco-friendly and create a digital folder on your desktop labeled “Tax Deductible Contributions” and save all of your digital charitable receipts there.
What Does Not Qualify as a Charitable Contribution?
According to the IRS, these types of organizations will not count towards a tax-deductible contribution:
- Political groups or any candidate running for office
- Sports clubs
- Civic leagues
- Labor unions
- Any organization that is operating for profit
Although some of these organizations may have an honorable mission statement, if they do not operate as a non-profit association, you cannot count your “charitable” contributions toward their company as a tax write off.
Success Tax Relief: Giving Advice in Order to Save You Money
Here at Success Tax Relief, we also believe in the concept of giving in order to receive and it not just because of the holiday season either! We believe in giving helpful advice in order to gain your trust. We can alleviate any tax issues that may come your way. To get a better understanding of the type of services we offer, visit our website here. If you’d prefer a personal approach, call us at 1-877-825-1179, ask us a question online or email us today!