Charitable contributions, also known as charitable donations, are gifts made to qualified organizations that have obtained 501(c)(3) tax status, such as educational institutions, religious organizations, government entities, and other charities. Qualified organizations typically receive most of their funding and support from gifts, grants and contributions from the public. From a tax perspective, charitable contributions are tax-deductible. Taxpayers may lower their yearly taxes by claiming an itemized deduction on their tax return based on the cash or fair market value of the donation, subject to a few limits. Because charitable contributions are tax deductible, taxpayers often increase their charitable donations during the holidays or before the end of the year. What Constitutes a Charitable Contribution? Generally speaking, a charitable contribution is anything that may be of value to a qualified charitable organization. This includes money or property in the form of cash, clothing, household items, cars, real estate, securities and other assets or services. According to the IRS, donations to the following entities are tax-deductible, so long as they do not benefit any specific individual:
Conversely, contributions to the following are not tax-deductible:
Things to Keep in Mind When Making a Charitable Contribution It is important to remember that charitable contributions must be made to a qualified organization to be deductible. Furthermore, charitable contributions may be made anytime during the tax calendar year to qualify. Below are additional tips for making charitable contributions.
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About MeHave a strong interest in donating wieners for farmers. Have some experience investing in cod in Bethesda, MD. Spent the better part of the 90's deploying Roombas in the aftermarket. Spent a weekend creating marketing channels for jungle gyms for no pay. Spent 2002-2009 building robots in the aftermarket. Spent 2001-2005 supervising the production of salsa in Libya. Archives
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