Primary motivation of donating to charities need to be humanity. In addition, donors can get good tax benefits for charity contributions.
Know the rules and benefits of charity donations
Itemize your charitable contribution
- For gaining advantage on tax returns, it is vital to itemize your overall charitable deductions appropriately.
Consider the charitable status
- Tax deductible charities means the organizations possess IRS registration, which is mandatory.
- Contributions to foreign charities, foreign government, individuals, and specific private foundations are not deductibles.
Know your contribution limits
- Contributing more than 20% of total income towards charity needs a little consideration regarding limits.
- If you donated to public charity then deduction gets limited to 50% on yearly gross income.
- Consult a tax advisor to know the applied limits because the relevant rules can be complicated.
Non-cash donation rules
- Contribution of property with ownership for over a year will gain a deduction to its fair market value.
- IRS approves donations of household things and clothes, which are in better condition.