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pdwclw
New Member

Do charities like Paralyzed Vets, DAV, VFW, USO, American Legion, Judicial Watch, etc. qualify for the 50% charitable deduction like other charities do?

 
1 Reply
BMcCalpin
Level 13

Do charities like Paralyzed Vets, DAV, VFW, USO, American Legion, Judicial Watch, etc. qualify for the 50% charitable deduction like other charities do?

The IRS says:

"A 30% limit applies to the following contributions: Contributions to all qualified organizations other than 50% limit organizations. This includes contributions to veterans' organizations, fraternal societies, nonprofit cemeteries, and certain private nonoperating foundations." (page 14 at https://www.irs.gov/pub/irs-pdf/p526.pdf)

Some of your organizations appear to be true charities (Paralyzed Vets): "[a qualified organization is a]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, however, be organized and operated only for charitable [emphasis mine], religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. " (page 2 above)

Note that a true charity is generated incorporated as a 501(c)(3) (like the USO, see https://secure.uso.org/?sc=WEBDONATE&show_amount=true), while other entities may be incorporated as another type of 501(c) organization. 

On the other hand, the VFW itself appears to be a veteran's organization, subject to the 30% limit. The national organization is a 501(c)(19), but each post incorporates separately. HOWEVER, the VFW Foundation is a 501(c)(3) and this is a 50% charitable organization (see http://faq.vfw.org/faq/index.php?View=entry&EntryID=486).

If an organization appears to be one of the organizations listed for 30%, perhaps you should look at their websites or contact them - because they are very aware of what type of non-profit they are.

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