Donating to charity not only can make you feel good, but might save you some money on your taxes as well. However, to receive these tax benefits, you need to follow the rules of the Internal Revenue Service to ensure your donation is eligible. If you are interested in learning how to donate to a charity for a tax writeoff, research these rules thoroughly before making your donation.
Step 1
Search the IRS database for organizations to which contributions are deductible. The IRS will not allow you to write off your donation from organizations that do not meet the criteria and are not in its database.
Step 2
Find something to donate. Cash, household items, property and stocks are a few examples of things that you can donate. You cannot deduct the cost of raffles or other games of chance, contributions made to political organizations, contributions made to specific individuals, or the value of your time for services.
Step 3
Estimate the value of the items you are donating, if you are not donated cash. The IRS admits that determining the fair market value of an item can be tricky, but researching completed sales of comparable items may help. You can also check out your local thrift store or software programs, including "Its Deductible," to determine the fair market value for the item.
Call the organization to learn about their policies and procedures. Follow the procedures of the company to make your donation.
Step 4
Ask for a receipt after making your donation. This receipt should contain the type of donation made and the date. Some organizations will fill out the estimated value of the items for you, but some may require you to write down this amount.
Step 5
Fill out Form 1040 at tax time. If you are using an accountant to file your taxes, provide him with the information and receipts of each charitable contribution. The donations should be itemized using Schedule A.
Tips and Warnings
- All cash donations require a bank record, payroll deduction or written communication from the organization, regardless of the amount. If your total deduction for noncash contributions for the entire year exceeds $500, you must also complete Section B of Form 8283 and add this form to your return when filing taxes, according to the IRS.
- Clothing or household items must be in good condition or they will not qualify for a deduction. If your donation entitles you to goods or services, you can only deduct the amount that exceeds the estimated value of the benefit received. For example, you would only be able to deduct $20 if you paid $100 for a ticket to a charity ball but received a dinner valued at $80.
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