Friday, April 13, 2012

Deducting Your Donations


Charitable donation deduction category is often under used and confusing for people. So let's go over some basics of this statement. The first thing you need to know is that you can only deduct donations to certain organizations. The main types of qualified organizations that can donate and deduct the organizations that are religious, charitable, educational, scientific, or literary in purpose. This creates a window of opportunity for your donation. Also you can deduct donations to work to prevent cruelty to children or animals.

During the donation, it is important to make sure that the organization is qualified donation organizations. Every year our company gets a tax clients who ask their neighbors if they give their old baby clothes is a donation or if you have the money for their niece who are struggling financially to refuse. Unless you donate through a qualified organization is not tax deductible. Charitable organizations must be registered as such with the government. If you are unsure, you can ask the organization, and they should be able to give proof of their charitable status. The IRS also provides a list of organizations on their website. If you stick with the church or the more well-known organizations can be assured that the donation is worth. Here are some examples of qualified exempt organizations:

First Churches, synagogues, mosques, temples, etc.

Second Boy Scouts, Boys and Girls Clubs of America, Goodwill, Red Cross, Salvation Army, United Way, etc.

Third Fraternal orders if the gifts are used for charitable purposes as mentioned above.

4th Veterans and certain cultural groups.

5th Nonprofit schools, hospitals and organizations whose purpose is to find a cure or help people who have debilitating damage or disease.

6th Federal, state and local governments if the donation is only for public purposes.

Another thing you need to know about making a donation of what you donate. There are three media can be used to make a donation that is tax deductible.

First Money, money, check any money given to charity counts as a deduction.

Second Real estate, for it would deny the monetary value of physical objects or property.

Third Cost-of-pocket any money you paid for volunteer work.

There are many ways to donate and more places to donate. Most people spend little, if not a lot of money and time to charitable projects. If you spent any money this year to charity, make sure you report it on your taxes and take advantage of this great tax deduction. There is no reason not to.

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