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Charitable giving is one of the best ways to help non profit organizations and, at the same time, help your finances. A qualified charitable donation is tax deductible. Whenever you donate to a non profit organization, you must make sure that it is a qualified organization so that the amount you give will be tax deductible which will help you lower your income tax obligation to the IRS. By lowering your taxable income, you will owe less taxes and therefore save more money. The more taxes you can save, the more money you will have to put in your bank account to use for other purposes.

One of the problems is that charitable giving is not without risk. Your donations are an investment in your community, the nation, and the world. It is best to be cautious when you decide which organization to donate to so you might be able to avoid scam artists who try to benefit by taking advantage of your generosity. You should be aware of non profit organizations that spring up overnight in connection with current events or natural disasters. They usually make a compelling case for your money, but as a practical matter, they usually do not have the infrastructure to get the money to actually help the affected areas or people. Therefore, before you donate, you should ensure that the non profit organization you are about to donate to is legitimate.

When you make any donations, it is beneficial to try to claim the appropriate tax deductions. The tax benefit for donations is available for taxpayers who itemize deductions. The IRS reveals that about one-third of all filers itemize. Those who take a standard deduction receive no added tax benefit for their charitable gifts. The IRS reminds taxpayers to keep necessary records to substantiate the value of their gifts. For example, for any single gift of $250 or more, a taxpayer must have a written acknowledgment from the non-profit organization by the earlier of the date the person files the tax return or the filing deadline, including extensions. A person donating property valued at more than $5,000 must have a qualified written appraisal. For more information on how to claim tax deductions properly, you can refer to the charitable giving answer book.

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