Common Questions & Helpful Tips For Charitable Giving
We have received several questions from individuals who would like to donate a charitable gift, but are unsure of the process. The IRS allows you to take a charitable deduction on your tax return for qualified donations of cash or property if you itemize your deductions, but the rules can be confusing.
With the giving deadline approaching, we want to make your giving experience simple and stress free.
Here are some answers to common questions you may have, and helpful tips on chartible giving rules. Also included are links to the IRS's website with current tax laws for charitable giving and IRS forms and publications. The Given Chance provides a charitable donation receipt for all gifts In-Kind received. PLEASE NOTE: The Given Chance Charitable Donation Receipt is for receipt of gifts In-Kind ONLY. For cash donations to The Given Chance click here
What kind of donations qualify as "charitable"?
A donation of either cash or property can qualify as a charitable deduction if it is given to a qualifying organization.
I donated a bag of clothes (or other property). How much should I deduct?
The IRS allows you to deduct the "fair market value" of items you donate to qualifying organizations, which is admittedly vague and somewhat a matter of opinion.
You may deduct a maximum of up to 50% of your adjusted gross income (AGI) (Line 36 on IRS Form 1040) for the tax year the donation was given. However, if you give more than 50%, the excess may be carried forward for up to five years.
Your deduction for charitable contributions generally can't be more than 50% of your adjusted gross income (AGI), but in some cases 20% and 30% limits may apply. In addition, the total of your charitable contributions deduction and certain other itemizeddeductions may be limited.
To Qualify To Receive Deductible Contributions Form 1040 required. To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A (Form 1040). The amount of your deduction may be limited if cer tain rules and limits explained in this publication apply to you.