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Donating With Benefits

Have you ever thought about giving a monetary donation to charity? As we focus on Breast Cancer Awareness month it’s important that we also talk about ways to get involved and help. Maybe you can’t give your time to being apart of the cause, but you can provide financially to help the find a cure. Our friend LaKesha Womack has some great advice on how donating to Breast Cancer or any organization can also benefit you!

Question:
Can I use my Breast Cancer Awareness Donation as a tax write off?


Answer:
Based on information provided at irs.gov; you can use your donation as a tax write off in the following instances:

Your donation must be made to a qualified organization.  You cannot use the deduction it if it is made to an individual, political organization or political candidate.

You must itemize the deduction on a Schedule A when you file your Form 1040.

If you get anything in return for your donation (event ticket, merchandise, etc), you must deduct the fair market value of the product/service from your donation.  Fair market value is defined as the reasonable price that a willing buyer and willing seller would exchange for the product/service, not what either of you think it is worth.  If you are unsure, research the product/service to see what it is valued at.

You must have a written record of the donation.  It can be a receipt from the organization, a bank statement, copy of your payroll deduction or copy of your cell phone bill if you made the donation via text message.  The documentation should include the name of the organization receiving the donation, date of contribution and the amount given.

For more information on Charitable Contributions, visit http://www.irs.gov/uac/Eight-Tips-for-Deducting-Charitable-Contributions

LaKesha Womack/ twitter: @LaKeshaWomack/ www.LaKeshaWomack.com

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2 Responses to “Donating With Benefits”

  1. On October 15, 2012 at 6:54 pm LaKesha Womack responded with... #

    Thanks for allowing me to share! I’m looking forward to answering more money matters questions.

    • On October 16, 2012 at 1:38 am jenndiva responded with... #

      Anytime! Thank you for writing this post for us. I definitely appreciate it and think that there’s a lot we can all learn from this. I never knew about it being a tax write off so now I will do a better job keeping track of my donations.

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