Charitable Donations: A Tax & Giving Win!
It’s always wonderful to donate to charitable causes. But did you know that the type of organization you donate to can actually make a difference on your taxes - and even whether or not you can actually deduct it?
For example, donating cash through a GoFundMe type of account or to a friend in need, is a generous and kind gesture. But that type of donation is typically not a tax deduction. Yet, if you donate to a qualified charitable organization, it can mean being part of a tax reduction strategy. Of course the reason to give isn’t to save taxes - but if you do it right, why not take the tax win too!
- What is a qualified charitable organization? - Start here with simple examples of which types of organizations typically qualify.
- Charitable Contributions - A bit more detail here with a great overview of different types of donations and how to make your contribution count!
- Donating to Charity & Taxes: An Intro Guide - Fantastic blog that covers most types of donations!
- Charitable Contributions Tax Tips - This one links to over 20 articles (and videos too) on charitable giving and taxes. It’s a bit of everything!
- Do I need a receipt for my donation? - Umm, yes! And you might need even more than a receipt.
- ItsDeductible - Track donations year round - plus it helps estimate values of donated items. How great is that?!
PRO TIP: Don’t ignore your charitable offerings of generosity at tax time. Even if you don’t benefit on the federal level, many states allow the deductions. Some states even provide dollar-for-dollar tax credits for cash donations to certain types of charitable organizations. It’s a true win-win for all!
If you need tax advice or have questions that aren't answered in the links above, please ask in our Taxes forum that best fits your needs!
