turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

donated salary deduction

Hello,

 

In addition to my full-time job I am the executive director of a nonprofit (501c3/public charity). I will be donating my salary in 2023 and was wondering how I would claim it? Do I get a deduction for the entire amount or is it reduced by the percentage traditionally used for in-kind donations? 

 

Thank you!

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies
Art EA
Employee Tax Expert

donated salary deduction

The charity will pay you and you make a cash donation to the charity.  You must have earnings and you can deduct what you donate to the charity.

BeckyLeeH
Employee Tax Expert

donated salary deduction

My colleague @Art EA gave a great answer. You may find this additional input helpful as well.
If you are being paid by the non-profit, you can donate your cash wages.
However, if you are donating your time with no pay, you cannot claim a donation .

 

I worked with non-profits for many years.  We always appreciate volunteers!
Thanks for donating your time and expertise to this organization.

 

In Kind donations are volunteer hours that can be used to match public grant or private cash income from these sources.

 

If you keep track of your volunteer hours (non paid), you can use these as in kind resources to obtain additional funding resources.

For example, some grants require 50% match to obtain the grant funds.

You can show your match as in-kind. 

# hours multiplied by appropriate hourly wage rate equals the total in-kind $ match.

 

For example, a school or public library reading program usually has volunteers who read books to the children.  They have each volunteer sign in and out when they start/stop their volunteer reading shift.

 

The non profit calculates the cost they would have had to pay to employees for these hours.

The non-profit  uses the volunteer hours as "in-kind" donations.

The non-profit can then obtain cash for the cost of books, supplies, etc  used in the reading program

 

Hope this helps!
Good Luck with your non-profit programs

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

donated salary deduction

If I'm able to do as you say (accept payment and then donate that payment), does the 50 or 60% limit cut that donation by 50 or 60%, or am I aloud to count it as a dollar for dollar deduction as long as I don't exceed 50 or 60% of my AGI? I'm trying to see what makes the most sense regarding itemizing/standard deduction. Thanks a ton for your help!

 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies