When it comes to making charitable contributions, I’ve got good news and bad news.
The good news: If you know how to keep the IRS happy, your favorite charity will benefit from your generosity and the government will subsidize your donation with a tax deduction that saves you money.
The bad news: Lawmakers have passed more rules that you have to worry about. And the Internet offers many opportunities to make donations that don’t qualify for tax deductions.
Want to learn how to do good and do well at the same time? Read my new article titled Tax Tips: Beware, Be Alert, and Be Selfish with Charitable Contributions.
Three ways our fact-filled article can help you:
- You’ll learn why you should only donate to “qualified organizations.” The IRS grants you deductions only when you give to “qualified” organizations. These organizations must meet five IRS requirements that we’ll list for you when you read the full article.
- We’ll tell you how the IRS can help you. (Yes. Actually help!) The IRS has an online tool that will help you determine if an organization is qualified to receive tax-deductible contributions. This handy tool also specifies the maximum amount you can deduct. We’ll tell you where to find this helpful resource when you read the full article.
- We’ll explain the kind of records you need to keep. Whether you make your contribution with cash, check, electronic funds transfer, debit card, credit card, or payroll deduction, you’ll need to provide the IRS with one or two of three kinds of proof. We’ll tell you what they are when you read the full article.