Tax Deductions for Charitable Contributions

If you wish to have your charitable contributions tax deductible, you should be aware that there are qualified charitable institutions who could make your contributions qualify for tax deductions. You must know how to choose those organizations that provide tax deductions for your gifts. Actually it is not only where you contribute but also the type of gift that you give out that will qualify what you give for tax deductions.

You must bear in mind that your charitable donations do not automatically mean tax deductions. There are not considered tax deductible. Such contributions include those that are being given to foreign organizations as well as foreign private institutions. Donations to needy individuals and not to organizations are not considered as tax deductible. Here is a sample list of organizations that may be able to offer you tax deductions for your charity gifts.

Non-profit educational organizations

Churches and other religious organizations

Organizations that are widely supported by the public

Tax exempt medical institutions and research organizations

Selected private institutions that give all contributions to public charities

Private foundations that collects all all of its donation into one common fund

A government institution involved in charity work

Membership organizations that rely a third on what the public contributes to it to operate

Donations in kind also can be stated as tax deductions on your income. But doing so may be a bit more complicated. Donations in kind are usually non-monetary items that you plan to give out to a charitable organization. They can either be old or new tangible items that others may still find some use. They can be equipment, used clothes, furnitures, and other physical assets may be considered for tax deduction come income tax filing. Also bear in mind that not all non-monetary donations may be tax deductible.

Contributions to charity in the form of food or service are not usually considered as tax deductible. The reason for this is because it may not be some tangible item that is being donated and therefore may not be considered for tax deductions. Donations in kind are usually send to organizations such as Goodwill or the Salvation Army that aims to distribute such donations to the less fortunate.

In order to ensure that your donations may be deducted from your income tax filing for the year, it is very important that you get hold of a receipt stating that you have made a contribution to a certain charitable organization. This would be easier if you have given your donations in the form of cash.

For non-monetary gifts, a qualified assessment of the value of your donation may be required along with the receipt from the charitable organization that you donated to. This is especially true for large non-monetary donations. The IRS usually requires the fair market value of your donation in order determine the tax deduction. An assessment of your donation will provide the IRS with the means to compute for the value of your non-monetary donation and the subsequent tax deductions that you will benefit from your charitable gift.