Deductible charity contribution means gift made to qualified organization. Donation needs to be voluntary without any anticipation of reward.
Types of charity donation
- Money is gifted either by credit card, check, payroll deduction, or electronic funds transfer.
- Obtain a receipt for tax deduction qualification.
Clothing, household item and food donations
- Donated item can be new of if used need to be in good condition.
- Determining the donated item value has no specific algorithm but guidance from IRS Publication 561.
Car & vehicle donations
- Donation value will get determined by how vehicle gets used by the charitable organization.
- Organization provides documentation on how vehicle will be used or if sold its selling price.
- Read donors guide for vehicle donations to get an insight about taxable deductions.
List of qualified charitable organizations
- Local, state, and federal governments
- Places of worship or religious organizations
- Non-profit hospitals & health clinics
- Recreational facilities & public parks
- War veteran groups
- Non-profit schools & educational organizations
- Scientific organizations
- Literacy promotional organizations
- Animal & child protection organization
- Service organizations
- Organizations registered with IRS
Online IRS check tool helps to ensure that the specific organization falls under charitable tax deduction.
Can transportable cost be deducted?
- Travelling to and fro in your personal car to perform charitable services allows you to deduct transportation costs.
- Volunteers of qualified charitable organization are eligible to deduct expenses related to charity service performed.
- Expenses against housing student, who is sponsored by qualified charitable organization, get approved for tax deduction.