In order for your donation to be deductible, it must go to a nonprofit group that is approved by the IRS. Most often, these are charitable, religious or educational organizations, though they can also be everything from your local volunteer fire company to a group for the prevention of cruelty to animals.
- If you're not sure whether the group you want to help is approved by the IRS to receive tax-deductible donations, check online at IRS Exempt Organizations Select Check.
- This site allows you to enter an organization's name and location to instantly find out if it qualifies.
As with all deductions, timing is everything. You can take the deduction for your contribution in the year that you make it.
- For example, if you mailed a check to your favorite charity on December 31, you can write it off on that year's tax return.
- If you charge the donation on a credit card, the write-off is claimed in the year the charge is made, even if you don't pay the credit card bill until the following year.
- But a pledge to make a donation is different: Because it's only a promise to make a future donation, there's no deduction until you actually follow through.
