When considering a donation...
- Use SHARE Lehigh Valley to research the charity you have in mind. Visit the organization's website. If the organization has no website, call them for more information.
- Tour their facility: Many organizations will be happy to meet with you and provide you with a tour of their facilities, upon request.
- Review the current tax laws regarding charitable contributions.
- For a full list of charitable tax deduction information, visit the IRS website.
Tax Tips on Charitable donations:
- Be sure you receive a letter acknowledging all gifts over $250.00.
- If you receive any personal benefit because of your contribution such as merchandise, tickets to an event, or other goods and services, then you can deduct only the amount that exceeds the fair market value of the benefit received.
- You cannot deduct contributions made to specific individuals, political organizations and/or candidates.
- Donations of stock or other non-cash property are usually valued at the fair market value of the property. Clothing and household items must generally be in good used condition or better to be deductible. Special rules apply to vehicle donations.
- For more information see: IRS - Eight Tips for Deducting Charitable Contributions
Charitable IRA Rollovers: Extended through 2013
The IRA Charitable Rollover has been reinstated through 2013 as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The IRA Rollover provision allows individuals 70 ½ and older to donate up to $100,000 from their Individual Retirement Accounts (IRAs) to public charities without having to count the distributions as taxable income. Distributions can only be made from traditional Individual Retirement Accounts or Roth IRAs. Charitable donations from 403(b) plans, 401(k) plans, pension plans, and other retirement plans are ineligible for the tax-free treatment.
For more information see IRS Publication 590: http://www.irs.gov/publications/p590/ch01.html#en_US_2010_publink1000230424
** Disclaimer: SHARE Lehigh Valley does not advise on any legal or personal income tax planning or issues. Any personal tax information on this site or any other website referral is for general information only and does not represent personal tax advice either express or implied. You are encouraged to seek professional legal and tax advice for income tax and legal questions and assistance.