The end of the year is a popular time to make last minute charitable donations to help ease the pain of the coming tax season. Now is a perfect time to make your donations and help out the organizations important to you.
Different classifications of charities mean different things for your tax-deductible donations. We all want to lower that tax bill come spring, but it is important to know where you are putting your money and what it means for your taxable income.
For 501(c)3 charities, the rules are pretty straight forward. However, many may not know how the process works. Don’t make the mistake of misplacing papers or mistaking a charity’s tax exemption status by being uninformed. Make the most of your money during the next tax season.
What is a tax-deductible donation?
A tax-deductible donation is one made to a qualified charitable organization. It may entitle you to a charitable deduction against your taxable income. There are caps to the amount of money written off on your taxes. Please consult your tax advisor for that information.
CFM is a 501(c)3 organization and is a qualified charitable organization. For other questions about your benefits when donating to CFM, please contact our office at 573-634-2322.
What do I need to do to ensure I get the tax benefits?
Your contribution is tax deductible for the year in which it is paid. You will need to itemize your tax deductions in order to claim any charity breaks. You can claim your tax deduction on a Personal Tax Form 1040 Schedule A, linked here. Contact your tax accountant for additional information.
For CFM, we suggest making your donations as early as possible. Any donation you make throughout the calendar year goes towards your taxes when you file them by April 18.
What other types of donations are tax deductible?
In general, some organizations accept property donations including land, vehicles, clothing or other household goods. Any donation must be meticulously recorded for condition and value.
What is a common mistake that hinders claiming charitable donations?
Amid busy schedules, many forget how important it is to record all of your tax-deductible donations. When tax season rolls around, it is vital to have records of everything you donated to ensure you get the full benefits. For example, designating a file folder to charitable donations will help you keep neat records of all donations you make throughout the year.
When donating online to CFM, a receipt will be automatically emailed to you if you include your email address. For a receipt from a cash or check donation to CFM, simply ask a staff member and they will provide one.
Make your charitable donations early, keep track of what you donate to each charity and double check that all of your donations were made to charities that are labeled as tax-exempt by the IRS. With a little planning, next tax season will be your easiest.
For any questions regarding donations to CFM, call the office at (573) 634-2322 or email Laurie at firstname.lastname@example.org.