IRS issues reminders for taxpayers looking to donate
It’s the time of year where you may be feeling led to give back by donating your time, property and money to the charity that means the most to you. Receiving a tax deduction on your charitable donation is not a reason to give, but it does offer auxiliary benefit to your generosity.
Not all donations are deductible. Contributions to individuals are never deductible. To be deductible, you must make charitable contributions to qualified organizations. Unsure if your favorite organization is qualified? The IRS has a tool that can help ensure your donations are as beneficial as possible. Tax Exempt Organization Search on IRS.gov allows users to search for tax-exempt charities. Taxpayers can use this tool to determine if donations made to an organization are tax-deductible charitable contributions.
“Before you pull out your check book, it’s important to stop and think about what type of contribution you are actually making,” CPA Angie Svitak advises her clients. “Is it a charitable donation, or really just advertising? If you are making a donation to your child’s school and receiving a benefit from it—perhaps through name recognition or advertising—then it’s advertising, and should be coded as such.”
Angie Svitak, CPA