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There are so many great organizations and activities with worthy programs and goals. Though you want to give and help others, you want to do so as wisely and effectively as possible. You want to make it count, and when you do donate, you want to use the IRS Tax Tips and guidelines to ensure your charitable donation is recognized at tax time.<\/span><\/p>\n IRS Tax Tips 1) \u201cEligible” or No?:<\/span><\/strong><\/p>\n Not every organization that asks for contributions is considered a \u201cqualified\u201d organization. When you receive a request for a donation, take the time to research the organization or program. The IRS offers an online \u201cSelect Check Tool\u201d that lets users search the IRS database to see if an organization is \u201celigible\u201d for tax-deductible donations. Not all organizations are eligible, and even if a charitable organization has been eligible in the past, if it has failed to stay current with its filings and maintain its tax-deductible status, then it may no longer be eligible.<\/span><\/p>\n The IRS Select Check Tool<\/strong><\/span> The IRS also notes that you can ask the requesting organization for a letter confirming its tax-deductible status. And if you like to get things by phone, you can always call the IRS at t 1-877-829-5500 to see if the organization is eligible.<\/span><\/p>\n Just one asterisk: Not all \u201celigible\u201d organizations are listed in the IRS database. Some eligible organizations, like churches and \u201caffiliated organizations,\u201d may be eligible but not listed. See more at \u2013<\/span><\/p>\n https:\/\/www.irs.gov\/Charities-&-Non-Profits\/Contributors\/Other-Eligible-Donees<\/a><\/span><\/p>\n IRS Tax Tips 2) Just the Two of Us: <\/span><\/strong><\/p>\n In order to claim a tax-deductible donation, the IRS wants to see either 1) a bank record (e.g., a cancelled check, or an account statement), or 2) a letter from the receiving organization acknowledging the donation type, amount, and date. So make sure you save one or both of these acceptable forms of documentation, depending on the donation amount, to make the filing process go smoothly.<\/span> IRS Tax Tips 3) About that Musty Set of Funk & Wagnalls: <\/span><\/strong><\/p>\n Yes, the IRS does care about the condition of the items you donate and claim as tax deductions. In fact, it stipulates that any items donated and claimed on your taxes must be in \u201cgood used condition,\u201d or better. But if you\u2019ve decided to donate an original \u201cTurning Leaf\u201d Tiffany lamp, or Babe Ruth\u2019s signature on the last pitched baseball from the 1918 World Series, or any item over $500, you just need to show a \u201cqualified appraisal\u201d of worth when you file.<\/span><\/p>\n IRS Tax Tips 4) The Rule of $250: <\/span><\/strong><\/p>\n In order to claim the deduction, every cash or goods donation of $250 or more, you must have a letter of acknowledgement from the receiving and eligible charity. The letter has to be \u201ccontemporaneous\u201d and used in addition to other required documentation. If you find yourself giving over $250 to the same organization more than once in a filing year, the IRS will accept separate letters of acknowledgement from the charity for each contribution or an annual summary of all the donations to the same charity. For additional considerations, read more here \u2013<\/span><\/p>\n https:\/\/www.irs.gov\/pub\/irs-pdf\/p1771.pdf<\/a><\/span><\/p>\n IRS Tax Tips 5) Quid Pro Quo: <\/span><\/strong><\/p>\n The IRS defines and recognizes quid pro quo: money given to a charity as both a donation and in exchange for goods or services like a ticket or a reception or tour. When you make a quid pro quo contribution, make sure the charity\u2019s disclosure statement accurately reflects the donation, minus the value of the goods or services received. More information on quid pro quo contributions and deductions is available here \u2013<\/span><\/p>\n https:\/\/www.irs.gov\/Charities-&-Non-Profits\/Substantiating-Charitable-Contributions<\/a><\/span><\/p>\n IRS Tax Tips 6) Taking Stock of Donated Stock: <\/span><\/strong><\/p>\n If you\u2019re donating stock or other non-cash contribution like property, use the \u201cfair market value,\u201d or FMV, to determine the value of the donation. Determining the FMV of your stock, property, or other non-cash contribution requires a bit of finesse and a good understanding of the market, so do your research.<\/span><\/p>\n The IRS offers more information on FMV with examples at \u2013<\/span><\/p>\n https:\/\/www.irs.gov\/publications\/p561\/ar02.html<\/a><\/span><\/p>\n If your non-cash contribution is valued over $500, you\u2019ll need to file Form 8283.<\/span><\/p>\n https:\/\/www.irs.gov\/uac\/About-Form-8283<\/a><\/span><\/p>\n IRS Tax Tips 7) Car Go Bye Bye: The most recognizable non-cash contribution is often sitting in your driveway or garage. A number of charities have set up 1-800 numbers, websites, and well-promoted vehicle donation programs. Though a charity may make the process of vehicle donation appear, do your research before donating. The IRS has a robust and detailed set of specifications about vehicle use, condition, information, transfer, value, appraisal, and deductions. See more at \u2013<\/span><\/p>\n https:\/\/www.irs.gov\/pub\/irs-pdf\/p4303.pdf<\/a><\/span><\/p>\nHelpful IRS Tax Tips<\/h2>\n
\n https:\/\/www.irs.gov\/Charities-&-Non-Profits\/Exempt-Organizations-Select-Check<\/a><\/span><\/p>\n
\n Just the three of us? If you are donating through your workplace and a payroll deduction, you should save a pay stub and your W2 wage statement as proof of your donation. Your documents will need to show the total amount withheld (donated), and the IRS will be looking for something called a \u201cPledge Card\u201d from your chosen charity.<\/span><\/p>\n