What does it mean to be a 501(c)(3) organization?
What is my tax benefit for charitable contributions?
What counts as a charitable organization?
How can I take a deduction for my donation?
Do I need a receipt for donations I make?
Do I need any acknowledgement for donations under $250?
For donations over $250, what information does the receipt need?
Can I receive a tax deduction for a donation to a nonprofit overseas?
Can I take a deduction for volunteering my time and services?
What
does it mean to be a 501(c)(3) organization?
For charities, this means that they can accept contributions and
offer donors a tax deduction for their gifts. For donors like
you, this means your contributions are fully tax-deductible to
the amount allowed by law. The email receipt you receive from
JustGive does indeed meet all the IRS requirements as a record
of donation.
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What
is my tax benefit for charitable contributions?
The chart below gives the deduction for a single person in each
tax bracket making a cash donation of $100. The instructions for
the Form 1040 will help determine the exact amount of your deduction,
which will vary depending on your tax bracket and whether you
file as a single person or jointly.
|
Tax Bracket
|
Donation Amount
|
Benefit
|
Out-of-Pocket Cost
|
| 10% |
$100 |
$10 |
$90 |
|
15%
|
$100
|
$15
|
$85
|
| 25% |
$100 |
$25 |
$75 |
|
28%
|
$100
|
$28
|
$72
|
|
33%
|
$100
|
$33
|
$67
|
|
35%
|
$100
|
$35
|
$65
|
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What
counts as a charitable organization?
A charitable organization is generally defined as any nonprofit
organization that is incorporated and identified by the IRS as
a 501(c)(3) organization. These organizations have been given
tax-exempt status and can accept contributions. JustGive itself
is a registered 501(c)(3) organization, as well as all of its one million charities.
Please note:
Not all donations to nonprofits can be claimed as charitable deductions,
even if the organization is registered as a nonprofit. Check with
the IRS on whether or not an organization can receive charitable
deductions.
Charitable events: For a charitable event, only a portion of
the ticket value is deductible. The charity hosting the event will be
able to identify the exact value of the benefits for each event.
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How
can I take a deduction for my donation?
To claim a deduction, you will need to fill out a 1040 Form, which
is available through the IRS website,
and itemize your deductions on Schedule A. If you fill out the
short form or take standard deductions, you cannot claim your
contributions.
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Do
I need a receipt for donations I make?
Taxable years beginning prior to the effective date of the Pension
Protection Act of 2006, the IRS doesn't require receipts for donations
under $250, though it is a good idea to keep this information on file.
For all donations made in taxable years beginning after the effective
date of the Pension Protection Act of 2006, the IRS requires the donor
to maintain the bank record or a written communication from the
organization to which you donate. Every time you make a donation
through JustGive, that donation is recorded in your Giving History by
the year, a feature that makes itemizing your taxes easy and convenient.
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Do
I need any acknowledgement for donations under $250?
Taxable years beginning prior to the effective date of the Pension
Protection Act of 2006, the IRS doesn't require receipts for donations
under $250, though it is a good idea to keep this information on file.
For donations made in taxable years beginning after the effective date
of the Pension Protection Act of 2006, the IRS requires the donor to
maintain the bank record or a written communication from the
organization to which you donate. Always note the name of the
organization, the donation amount, and the date of the contribution.
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For
donations over $250, what information does the receipt need?
The donor must maintain the bank record or a written communication from
the organization to which you donate. The acknowledgment needs to
record the name of the organization, the donation amount, and the date
the contribution, as well as a written acknowledgement of any property
or services that you may have received in return for your donation and
an estimate of their value. The IRS should acknowledge an email receipt
as an acceptable record of contribution, but to be certain, always
consult your tax advisor.
When you donate on JustGive, your email acknowledgement
will provide the amount, transaction date, and the charity name,
all things the IRS wants you to keep a record of when you donate.
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Can
I receive a tax deduction for a donation to a nonprofit overseas?
If you want to take a deduction for your donation, be sure to donate to
a charity registered in the United States. That doesn't mean you can't
give to an organization that has an international scope, such as CARE
or Save the Children. You just have to make sure the charity is
registered in the U.S. if you want to take the deduction.
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Can I take
a deduction for volunteering my time and services?
You cannot deduct the value of time or services to a charitable
organization, but you can deduct any hard costs associated with
that volunteering, such as the gas or bus fare it costs to get
there. For example, if you volunteer in a charitable hospital
and have to wear a uniform, you can deduct the cost of buying
and cleaning the uniform. The IRS
will let you deduct any out-of-pocket expenses you acquire in
the course of volunteering.
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Disclaimer: JustGive does not warrant or guarantee the accuracy,
quality, completeness, or validity of any information it provides.
All information has been obtained from sources believed by JustGive
to be accurate and reliable. Please consult your tax advisor for specific
tax advice.
For
more answers to your questions, please read our Donor Information FAQs.
Can I deduct charitable contributions on my tax return?
|
| When making charitable contributions to qualified organizations, a
tax deduction is
generally available for those charitable contributions for taxpayers who itemize tax
deductions on their tax return, provided, in most cases, the
total tax deduction on the taxpayer's tax return does not exceed ½ of
the taxpayer's Adjusted Gross Income. Excess tax deductions for
charitable contributions may be carried
forward to future tax returns for five tax years. You can deduct your
charitable contributions on your tax return only if you make the
charitable contributions to a qualified organization. To become a qualified
organization and accept tax deductible
charitable contributions, most
organizations other than churches and governments, as described below, must apply to the
IRS.
Restrictions on Charitable Contributions made after August 17, 2006
Cash contributions
All cash contributions made in tax years beginning after August 17,
2006, to any qualified charity must be supported by a dated bank record
or a dated receipt. The tax year for most individual taxpayers begins
on January 1.
Clothing and household items
Beginning with contributions made after August 17, 2006, no deduction
is allowed for most contributions of clothing and household items
unless the donated property is in good used condition or better.
Charitable
Contributions - IRS Publication 78. You can ask any organization
you intend to make charitable contributions to whether it is a qualified
organization, and most will be able to tell you. Or you can check Publication 78
prior to making a
charitable contribution, which
lists most qualified charitable organizations. You may find Publication 78 in your local library's
reference section. If not, you can call the IRS tax help telephone number shown for your
area in your tax package to find out if a charitable organization is
qualified to accept tax deductible
charitable contributions.
Charitable Contributions - Types of Qualified
Charitable Organizations
Generally, only the six following types of
charitable organizations can be qualified charitable organizations and
accept tax deductible
charitable contributions.
 | The United States, a U.S. Possession, a state, city, or town, or Indian tribal
government; |
 | A community chest, corporation, trust, fund, or foundation organized or created in or
under the laws of the United States, any state, the District of Columbia, or any
possession of the United States (including Puerto Rico). It must be organized and operated
only for the following purposes: |
|
Religious, |
|
Charitable, |
|
Educational, |
|
Scientific, |
|
Literary purposes, or |
|
For the prevention of cruelty to children or animals; |
|
Certain organizations that foster national or international amateur sports
competition also qualify; |
 | Domestic non-profit veterans' organizations or auxiliary units; |
 | A domestic fraternal group operating under the lodge system; |
 | Nonprofit cemetery and burial companies (your
charitable contribution must benefit the whole
cemetery, not your burial plot); |
 | Legal services corporations organized under the Legal Service Corporation Act. |
Charitable Contributions -
Examples. Qualified
charitable organizations that can accept tax deductible
charitable contributions include:
 | Churches, a convention or association of churches, temples, synagogues, mosques, and
other religious charitable organizations, |
 | Most nonprofit charitable organizations such as the Red Cross and the United Way, |
 | Most nonprofit educational
charitable organizations, including the Girl (and Boy) Scouts of
America, colleges, museums, and day-care centers if substantially all the child care
provided is to enable individuals (the parents) to be gainfully employed and the services
are available to the general public. However, if your charitable contribution is a substitute for
tuition or other enrollment fee, it is not tax deductible on your IRS
tax return as a charitable contribution, as
explained next under Charitable Contributions You Cannot Deduct, |
 | Nonprofit hospitals and medical research
charitable organizations, |
 | Utility company emergency energy programs, if the utility company is an agent for a
charitable organization that assists individuals with emergency energy needs, |
 | Nonprofit volunteer fire companies, |
 | Public parks and recreation facilities, and |
 | Civil defense charitable
organizations. |
Charitable Contributions You Cannot Deduct
on Your Tax Return
Charitable contributions you cannot deduct
on your tax return at all include charitable contributions made to specific
individuals, political organizations and candidates, the value of your time or services
and the cost of raffles, bingo, or other games of chance. You cannot deduct
on your tax return charitable contributions
that you give to qualified charitable organizations if, as a result, you receive or expect to receive
a financial, or economic benefit equal to the charitable contribution.
Although you cannot deduct on
your tax return the value of your time or services, you can deduct on your tax return the
expenses you incur while donating your services to a qualified charitable organization. If the
expenses are for travel, which may include transportation and meals and lodging while away
from home, they may be deducted on your tax return only if there is no significant element of personal
pleasure, recreation, or vacation in the travel. Actual costs of gas and oil can be
deducted on your tax return, or you can choose to take 14¢ per mile for using your own car. For more
information see, IRS Publication 463,
Travel, Entertainment, and Gift Expenses.
Charitable organizations must provide donors with contemporaneous written
acknowledgment of all charitable contributions valued at $250 or more. Donors are responsible for
requesting this substantiation of the charitable contribution from the charitable organization. In addition,
charitable organizations must disclose the
value of any benefits provided when a charitable contribution of more than $75 includes some benefit
(e.g., a fund-raising dinner or entertainment). The value of the goods or services
received is not tax deductible on your tax return.
Charitable Contributions - Canadian charities. To deduct your
charitable contribution to a Canadian charity,
you generally must have taxable income from sources in Canada. See IRS Publication 597, Information
on the United States-Canada Income Tax Treaty, for information on how to figure your
tax deduction on your tax return.
Charitable Contributions -
Mexican charities. You may be able to deduct
on your tax return charitable contributions to certain Mexican
charitable organizations under an income tax treaty with Mexico. To deduct your
charitable contribution to a Mexican charity on your tax return, you must have taxable income from sources in
Mexico. The charitable organization must meet tests that are essentially the same as the tests that qualify U.S.
charitable organizations to receive tax deductible charitable contributions. The
charitable organization may be able to tell
you if it meets these tests. If not, you can get general information about the tests the
charitable organization must meet by writing to the: |
|