Donations to charities are generally tax-deductible if the charity is qualified by the Internal Revenue Service. You can check with the IRS’s online search tool, Exempt Organizations (EO) Select Check , at http://apps.irs.gov/app/eos. Information about organizations eligible to receive deductible contributions is updated monthly. In general, foreign charities do not qualify.
Your deduction will be reduced by the value of any goods or service received in return for you donation. Your donations may also be limited by your adjusted gross income.
Also, with the 2016 presidential election heating up, it’s important to remember that political donations aren’t tax-deductible.
Of course, additional rules affect your charitable deductions, so please contact us if you have questions about whether a donation you’re planning will be fully deductible. We can also provide ideas for maximizing the tax benefits of your charitable giving.
If this is something you are considering, contact us.
Hal Zemel, a Tax Principal at Berdon LLP, has more than 20 years in public accounting and advises businesses in the real estate, service, and manufacturing sectors.