Make Sure Your Donation is Tax Deductible
November 17, 2023 – Tis the season for holiday giving, and with the end of the 2023 Tax Season coming up, it’s also the season of giving for tax benefits.
We have all heard the phrase, “I did it for the tax deduction.” Just make sure when you give, if you really need or want a tax benefit, that you follow a few rules. First and foremost, consult a tax professional. They are the experts and their guidance can mean a happy April, or a sad sad story come tax season.
Here are some general considerations when it comes to donating to a charity.
- Gifts to a non-qualified charity or nonprofit are not deductible.
- A pledged or promised donation is not deductible, only money that is actually given.
- Money spent on fundraisers such as bingo games or raffles are not deductible.
- Cash donations without a receipt cannot be deducted. Cash donations greater than $250 must also be documented with a letter from the organization. Non-cash donations also need supporting records.
To qualify, a group must register with the IRS under section 501(c)(3) or, in some cases, section 501(c)(4).
Before you commit to a donation, just make sure your charity of choice is ready to issue a receipt. No donation will be valid, for tax purposes, without one.
Amanda Dietlin, director of Meal-A-Day in Sulphur Springs, has been issuing receipts since she was hired. “Early on, we took a look at our form, and made a few changes to reflect IRS requirements,” said Dietlin.
Meal-A-Day is a 501(c)(3) charity, and currently has an anonymous benefactor matching donations up to $5000 until the end of 2023. “We are so grateful that this person stepped up. They will match dollar for dollar, up to $5000 total, any donation made to us this year,” said Dietlin.
If you would like to donate to Meal-A-Day in Sulphur Springs, Call Amanda at 904 885 1661, or stop by weekdays at 150 Martin Luther King. Be sure to get your receipt!