Know About Tax Deductions On Different Kinds of Charitable Contributions

Deductible charity contribution means gift made to qualified organization. Donation needs to be voluntary without any anticipation of reward.

Types of charity donation

Cash donation

  • Money is gifted either by credit card, check, payroll deduction, or electronic funds transfer.
  • Obtain a receipt for tax deduction qualification.
Charity donation form

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.
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