Before you donate anything valuable, meet with the organization first, and maybe even your tax advisor. Donations of time, services, or labor are not tax-deductible, but if you incur expenses performing those services, they could be.
You can even deduct the cost of the gas it took to drive to the event download IRS Publication for more details. Any benefits you receive back from the organization you donated to count against your deduction. The IRS permits eligible organizations to provide membership benefits. For instance, a museum that gives their members discounts on admission, parking, and in the gift shop.
Sometimes the organization will indicate the value of the gift or benefit you received on the documentation they send you, if any. The IRS has mandatory recordkeeping requirements for tax-deductible donations. Cash contributions of any amount: You must have a record showing the donation credit card statement, canceled check or a receipt from the organization that accepted your donation.
Payroll deductions of any amount: You must have a pay stub from your employer or a pledge card from the organization. Non-cash contributions of any amount: You must get a receipt from the organization, which describes the property you donated.
If you plan to claim such a donation, meet with the organization first and possibly your tax advisor, as well. Out-of-pocket expenses of any amount: Keep receipts of these expenses in case you need to prove that they were related to your volunteer activities with a qualified organization.
You also must have an acknowledgment from the qualified organization stating a description of the services you provided, and whether you received additional benefits of any kind to reimburse you for those services. Tip: When you donate on GlobalGiving, you can access your tax receipts at any time by logging into your account.
In addition, GlobalGiving emails every donor an annual tax receipt on or around January 15 of each year to make your record keeping that much easier. Everyone can and should! Every U. Now, if your itemized deduction total was close to your standard deduction total, you might decide to make additional qualified donations that would make your itemized deduction amount higher. In that case, your donations, as well as any other additional deductions, would lower your tax bill.
If you receive any property or service in exchange for your donation, your donation is reduced by the value of the property or service you received. The cost of raffle tickets is never deductible. When you purchase a raffle ticket, the price of the ticket is considered equal to the chance to win a prize. If you purchase auction items at an event, your purchase is only deductible to the extent it exceeds the value of the auction item.
Donating raffle or auction items has some unique rules as well. While many contributions of property allow you to take a deduction for the fair market value of the donated item, special rules apply when you donate property that is put to unrelated use by the organization.
The term unrelated use means a use that is unrelated to the organization's exempt purposes or function. The sale of an item is considered unrelated, even if the sale raises money for the school to use in its programs. In these cases, your deduction is limited to your basis in the item donated. The value of your time and services is not deductible. A masseuse that donates a free massage does not get to claim a deduction but if you donate a gift certificate that you purchased from a massage therapist, you can claim a deduction for the cost of the gift certificate.
OK to deduct. Note that if you pay over fair value for an item at e. So one needs to check that. If they are registered, then it depends on the nature of the payment. For example, a field trip. Not all PTA "donations" are tax deductible. Secondly, if you receive something of value in exchange for the donation, then it's not deductible.
If in doubt, the PTO must provide a receipt showing the amount paid, the value of the item purchased, and the amount that qualifies as a contribution. PTA volunteers who promote and organize activities can deduct unreimbursed expenses for meals, travel, phone calls, etc.
You should always ask for a receipt for noncash gifts. John DeSimone is a published fiction and nonfiction writer. He has contributed to regional newspapers and authored several books.
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