Tax Information - How to deduct your giving
Besides the satisfaction you receive in helping others and improving the community, the IRS offers tax incentives for charitable contributions. Form 1040, Schedule A is used to itemize deductions and reduce the taxable portion of your income. Even if you give non-cash assets, the donation will save money when filing your tax return.
MONETARY GIFTS
- You must maintain a record of the contribution with a written communication from the qualified organization containing their name, the date and amount of the contribution.
- United Way sends its donors a receipt of their pledge if it at least $250. For those participating in payroll deductions, their statement can be acquired through the Human Resource department of the employer.
NON-CASH CONTRIBUTIONS
- You must maintain a record of the contribution with a written communication from the qualified organization containing their name, the date, amount and description of the property.
- The statement must say whether any goods or services were given in exchange for the gift and give a good faith estimate of the value of those goods or services. For tax purposes, the deduction is the value of the gift net of anything received in exchange.
IRS Resources
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