Give A Little, Get A Little

As the end of the year approaches and we are in mid-holiday season, we may be in the giving spirit and even though we typically do this as a selfless act, it doesn’t mean we can’t benefit a little from it. Picking a charity and donating money or physical goods is always a great idea, however it may be smart to pick a charity that will provide a tax write off. This will be especially useful if this year has been a particularly good one for you or your business and you have a little bit to give away.

Charity Navigator shares some really great pointers when it comes to Tax Benefits to Giving:

• A gift to a qualified charitable organization may entitle you to a charitable contribution deduction against your income tax if you itemize deductions. 
• A contribution to a qualified charity is deductible in the year in which it is paid.
• Most, but not all, charitable organizations qualify for a charitable contribution deduction.
• There are limits to how much you can deduct, but they're very high.
• Rules exist for non-cash donations.
• Remember to document.

Not sure if the organization that you’re donating to is eligible? Here is a list of the places that may get you a tax deduction!

• Churches and other religious organizations;
• Tax exempt educational organizations;
• Tax exempt hospitals and certain medical research organizations;
• A government unit, such as a state or a political subdivision of a state;
• Publicly supported organizations such as a community chest;
• Certain private foundations that distribute all contributions they receive to public charities within two-and-a-half months after the end of the foundation's fiscal year;
• A private operating foundation which pools all of its donations in a common fund;
• Certain membership organizations that rely on the general public for more than a third of their contributions.

We’re always on the lookout for ways to improve the quality of life or friends and customers, but if you have any additional questions make sure to get in touch with Accounting Works!

If you’d like to read the full article by Charity Navigator click here