You can claim all charitable contributions of money and property donated to qualified organizations only if you itemize your deductions. Itemizing can allow you to reduce your taxable income, lower your tax bill and maximize your refund. If you have other deductions, like mortgage interest, property taxes, school taxes, bank interest and medical expenses, it usually makes sense to choose this option. Only itemize deductions when these write offs total more than the standard deduction.

1. Make certain you retain all your charitable donation receipts and canceled checks for the entire year.

• Put all the charitable receipts in a file, envelope or folder for safekeeping. You will need these receipts to prepare your tax return. If the IRS decides to audit your account, you will need these records to prove the validity of your deductions.
• Organize all your receipts by charity. For example, if you have made several donations throughout the year to one organization like Good Will or the Salvation Army, clip those receipts together.
• Arrange each of your charity receipts in order of date. Start with January 1, placing the others behind it until you reach December 31.

2. Download a complete set of instructions and forms from the official IRS website. The required forms for reporting charitable donations are Federal 1040 and Schedule A.

3. Itemize your charitable donations on the forms.

• Record all charitable contributions in the "Gifts to Charity" section of Schedule A. On most forms, you'll find this on lines 16, 17 and 18.
• Total the amounts of each line and enter this amount on line 19 of Schedule A, or the section for the total amount you are deducting under "Gifts to Charity."
• Copy the amount of your total tax deductions from line 19 on Schedule A to line 40a of your 1040. You'll want to verify that this is the line for the total amount of your itemized deductions.

4. Retain a copy of your federal and state tax returns for your files.

source : http://www.wikihow.com/Itemize-Charitable-Donations

donating

Posted By Stellar

Tired of your old car!! It’s time to donate your old used car for a good cause rather than selling it for few dollars. Donating a car to charity is one of the most thoughtful ways of helping people. You get a tax deduction worth the fair market value of your old car. Here are some few steps to consider while donating a car.

1. Finding the Right Charity Organization: Look around for charity organizations registered under 501(c)(3) or certified to accept donation lawfully. You can do this by searching online or by visiting charity centers personally. You can even contact various car donation services for finding the right organization to donate a car.

2. Fair Market Value of Your Car and Car Details: Once you have decided the charity organization, it’s time to find out the fair market value of your used car. For doing this you can go through the IRS guide and read publications 561 and 526. You can even contact a certified professional and get your car appraised by him. You also need to gather some basic details about car like make of the car, mileage, KMS run, VIN number, car papers and few other things which the charity may ask for.

3. Sign the Agreement Papers: Now, it’s the time for you to sign the agreement and submit the paperwork to the charity organization you are donating your car to. Now, you need to arrange a car pick up with the organization. Make sure you remove the number plate and all your personal stuff from the car before the “car pick up” people comes.

4. Enjoy your Tax Deduction: Once you are done with the car pick up and donation agreements, it’s time to enjoy some rewards. Ask for form 1098-C from the charity organization which you can file for tax deduction for that particular year. It always feels good when you think of your donated car in future. It’s always a fun to help others for a good cause and get their blessings. Donating your car or vehicle proves to be beneficial for all. So, think about poor people once before selling of your used cars for few dollars. Money is something people can’t just let go off, but helping for a good cause brings you lots of happiness and blessings.

source : http://www.wikihow.com/Donate-Your-Old-Used-Car

donating

Posted By Stellar

Do you have a boat you no longer want, or no longer want to maintain? It’s not easy to sell a luxury item like a boat in today’s economy, but you can still alleviate your burden as a boat owner and enjoy some financial gain, if only in terms of a tax deduction, and help a charitable organization at the same time. The steps outlined here apply to the United States.

Method 1 : Choose a Reputable Charity

1. Research before you donate. There are a number of sites that offer charitable deductions for your boat, but check to see if they are legitimate before you give away your boat:

• See if the organization has 501(c) status with the IRS.^[1]
• Look up the status of the organization on the nonprofit list of the Better Business Bureau.^[2]
• Consult Charity Navigator.^[3]
• Remember, due to the Separation of Church and State, churches and religious organizations are exempt from applying for nonprofit status. Donations made to these organizations are still considered tax deductible, and as an added benefit, they are 50% organizations which means that you will be allowed to deduct up to 50% of your AGI. If you cannot find a specific charity in the IRS database, consult the charity to determine whether they fall into this category.

Method 2 : Donate Your Boat

1. Go to the website of the charity you have selected.

2. Follow the website’s instructions. These websites generally have FAQ pages to explain how to donate your boat. Most websites will provide answers to all your questions; if not, contact the relevant person or webmaster to ask for more information. Typical questions that are usually answered in the FAQs include:

• How to determine if your boat donation is tax deductible
• How to determine the value of your donated boat
• How to arrange for your boat to be picked up (or where you can drop it off if preferred)
• The paperwork you will be required to provide
• The timetable for picking up your boat.

3. Be sure to let the charity know whether related items are included. For example, you may wish to include boating gear, life jackets, fishing paraphernalia, electronic equipment, etc.

source : http://www.wikihow.com/Donate-a-Boat-to-Charity

donating

Posted By Stellar

Blood is the substance of life and to give benevolently can make you feel more associated with your group and to your general surroundings. It's a satisfying, influential and advancing knowledge to realize that your donation could spare lives. Shockingly, less than 5% of individuals who are qualified to give really do. Envision the lives that could be touched by your blessing. It's a brisk, straightforward and astounding approach to offer over to the group.

1. Determine if you are an eligible donor. The following basic requirements apply, and the blood bank will ask you several questions about your health before drawing any blood. Your answers are confidential, and the questions are to help safeguard the blood supply.

• Be healthy.
• Be at least 17 years old (16 with parental permission in some jurisdictions).
• Weigh at least 110 lbs.

2. Find a local Blood Bank. There are several online sites that to help you find a local place to donate. Some of the best known are:

• American Association of Blood Banks
• Red Cross

3. Check out local blood drives for a convenient way to get acquainted with the process of giving blood without long drives to the blood bank.

4. Make giving blood a habit. If you're healthy, you never know when you're going to need blood as accidents, disasters and illness always happens. In the meantime, you will be helping others who are in life threatening situations and need what only a blood donor can give.

source : http://www.wikihow.com/Donate-Blood

donating

Posted By Stellar

You can have a positive impact on someone's life by donating items you no longer use to Goodwill Industries. Goodwill accepts a wide range of items and then sells them at its outlet stores. Goodwill uses the proceeds to provide disabled people with job-training services and other assistance. If you want to make a Goodwill donation, follow these steps.

1. Decide what items you'd like to donate. Goodwill accepts a broad range of business and household items at its stores and donation centers. The organization asks that items meet certain requirements. They include:

• Clothing: Make sure articles are clean and not worn out.
• E-Waste: Goodwill recycles computer components, so they can be in any condition.
• Small appliances: Specify whether the appliance is functioning or not. Damaged appliances are accepted for recycling.
• Vehicles: You can donate any vehicle, whether it's in operating condition or not, to Goodwill. The group handles all DMV paperwork for the transaction and provides complimentary towing.
• Hazardous materials: Goodwill does not accept dangerous or hazardous materials, like depleted batteries, cleaning supplies or ammunition.
• Recalled items: Do not donate items that have been banned or recalled.

Find the donation center closest to you. Go online to the Goodwill website to find local Goodwill stores and donation sites. Make sure the center accepts the items you plan to donate.

• Donation centers: Remote donation centers usually take smaller items. Don't leave items at an unattended location.
• Goodwill stores: Store locations accept the full-range of donated items, such as major appliances and larger items, including sporting goods.
• Pick-up service: You also can make a Goodwill donation by arranging to have Goodwill pick up items at your home. Drivers will remove any items from your property, including those Goodwill does not accept. You will get a receipt and can apply it as a charitable tax deduction. You have to pay a small fee for the pick-up service, which is usually done within 48 hours of making an appointment.

Write a check. Goodwill accepts financial contributions and allows you to target your funds. Some of the most popular programs include:

• Area of Greatest Need: This option allows you, with the help of a Goodwill representative, to channel your contribution to the program that will serve the most people as they struggle to clear employment barriers.
• Assistive Technology Exchange Center: The center helps people by providing specialized services and technologies.
• Goodwill Fitness Center: The fitness center provides adaptive equipment for people with physical disabilities and chronic illnesses.
• Circle of Independence: This program allows you to make a monthly contribution that directly puts your contribution to work in Goodwill programs and services.

Capitalize on the donations you make. Donations to Goodwill can be tax deductible. The organization offers an items calculator on its website to help you get an idea on the deductions your donation can provide. You will get a receipt for your donation and can claim it as a charitable tax deduction on your 1040 form, Schedule A. Check the Internal Revenue website or with your tax advisor for complete details.

source : http://www.wikihow.com/Make-a-Goodwill-Donation

donating

Posted By Stellar

Because charitable donations are tax-deductible for the donor and reportable by the nonprofit organization, a donation receipt must include specific information about the value of the donation and what the donor received in return. The IRS provides guidelines for what should be included on these receipts, though not specific forms; if you have questions about the tax law, you should consult the IRS website or a tax attorney. Nonetheless, charities can create a simple donation receipt on the computer or by hand to issue to donors.

Part 1 : Creating a Receipt

1. Pick a form. The receipt doesn't not need to be any particular style. That is, it can be a letter, a postcard, an email, or a form you fill in and hand to the donor, for instance. As long is it includes the appropriate information, it will fulfill the purpose of a donation receipt.^[1]

2. Include your name and your status. One of the most important items to include in your donation is the name of your charity. In addition, you need to acknowledge that you are a non-profit, meaning you have 501c3 status under the federal government.^[2]

3. Include the donor's name. You must include the donor's name on the receipt for it to be valid. Ask for the name when the donation is given, if it's not provided on a check or other statement.^[3]

4. Add information about the donation. You'll need to include the date the donation was made, as well as the amount of the donation. If the donation was not in cash, you need to add a description of the donation, such as "five men's dress shirts" or "black leather love seat." You should not specify a value if the contribution was not money; that task is up to the donor.^[4]

• For instance, if your donor gave your charity new computers, your description could say "The donor John Doe gave four desktop computers. The computers are brand new this year." You should also include the brand and type of computers.
• If the donation is a vehicle, you must include the VIN number.^[5]

5. Declare whether the donor received goods in return for the donation. The IRS makes a distinction between donations made without retribution and donations made that receive goods or services in return. This distinction is made because only the amount that exceeds the goods or services is considered tax deductible.^[6]

• For instance, if someone donated money and in return, she attended a charity dinner, that is considered goods or services. In that case, you need to provide a description of what she received and approximately how much those goods or services are worth.^[7]
• However, if someone just gave computers and didn't get anything in return, that means he did it purely for donation sake. In that case, you need to state that the donor did not receive goods or services in return for the donation.^[8]
• Some goods are considered insubstantial and do not qualify as good or services. The IRS has specific laws about such items, but in general, items such as cheap pens or mugs with your charity's logo on them do not count as goods or services that must be declared.^[9]
• If the only benefits received are intangible and of a religious nature, you need to make a statement relaying that information.^[10]

6. Include extra information for vehicles over $500. Donations of vehicles require a few more statements from you, especially if you turn around and sell the vehicle. If the vehicle is between $250 and $500, you can use the standard donation receipt.^[11]

• If the vehicle is sold, you'll need the date the vehicle was sold, as well as the gross profits you made from the sale. You'll also need to declare that you sold the vehicle under an arm's length transaction that was made between two unrelated parties. Finally, you need to tell the donor that the deduction she takes on her taxes cannot be more than the the gross profits you made from the sale.^[12]
• If you keep the vehicle, you'll need to state that you intend to keep the vehicle to use for an extended period of time, as well as how you plan to use it. The IRS calls this "significant intervening use," and it means that you plan to use the vehicle extensively when it is donated. You'll also need to say how long you will use it and certify that you will not sell the vehicle before the date you state.^[13]

7. Add a disclosure statement if required. Different states have different laws regulating nonprofits in the state. Some states require that you include a disclosure statement when writing acknowledgement letters or receipts. What is included in that disclosure varies by state, but many legal websites list the requirements.^[14]

• For instance, Virginia nonprofits are required to state that the donor can receive a financial statement about the nonprofit from the State Office of Consumer Affairs in the Department of Agriculture and Consumer Services, P.O. Box 1163, Richmond, VA 23218.^[15]

8. Sign the form. It's important for someone from the organization to sign the form. That acknowledges that the charity has created the document and signed off on the donation.^[16]

9. Separate the thank you letter. If you're also including a thank you letter, it's good a idea to send it separately from the donation receipt. The donation receipt is created for tax purposes, while the thank you letter acknowledges the donor's contribution to the the organization. You can send them in the same envelope, but they should at least be on separate sheets of paper. Your donor may want to display the thank you letter without disclosing how much she donated.^[17]

10. Keep a copy. If you happen to write the receipt by hand or create it in such a way that you don't have a saved copy on the computer, keep a copy of the receipt. You can make a photocopy or scan it into the computer, for instance. You'll need it for tax purposes later. Some organizations use receipt books that automatically make a carbon copy of the receipt.

Understanding the Law Around Donation Receipts

1. Give a receipt if possible for a donation over $250. To make a claim on taxes over $250, the donor must have a written acknowledgement from you, the charity. Though you are not required by law to provide it, you build goodwill with your donors by providing it.^[18]

• Donors can make claims on their taxes for donations under $250 with a bank statement to show they made the donation.^[19]

2. Give a receipt for a donation of $75 that buys goods or services. If you provide a good or service in return for a donation of $75 or more, you are required to provide a receipt to the donor. That means that if the donor pays $75 and receives a calender or a dinner, for example, you must provide a receipt under law.^[20]

3. Provide receipts upon request. Donors cannot claim donations over $250 on their taxes without a written receipt from the charity. Also, some donors just feel better having the receipt for donations under $250, and in fact, some may not have bank statements to prove they made the donation. Therefore, when a donor requests a receipt, even if the donation is under $250, provide one.^[21]

Sample Donation Receipts

Sample Donation Receipt

Sample Donation Receipt for Furniture

source : http://www.wikihow.com/Create-a-Donation-Receipt

donating

Posted By Stellar

If you have a cause that's close to your heart, you might consider collecting donations on behalf of that cause. When you do collect money, you need to make sure you are keeping it in a safe place separate from your personal funds. One way to do this is by opening a dedicated bank account. The type of account you open and the issues you have to deal with will depend on the cause you are supporting.

Choosing a Cause

Identify preferences. When you start your mission to collect donations, take time to consider the cause or causes most important to you. Are you interested in the environment, poverty, or illness? You also need to identify how broad you want your cause to reach. Do you want to keep your efforts local, regional, or are your interests international?^[1]

• Making these determinations before you solicit funds will help focus your efforts and make it easier for donors to get behind your cause.

Choose beneficiaries. Once you have an idea of your preferences, you will want to focus your fundraising efforts as much as possible. To do this, find specific individuals or groups that could benefit from your fundraising. You may already know an individual or group of individuals you want to help. On the other hand, you may have to do some searching.

• For example, if you are interested in helping a friend with cancer, you could simply let them know you want to help them by collecting donations.
• On the other hand, maybe you are interested in helping the homeless population in your city. If this is the case, you may have to team up with an organization with that goal or you may have to go out and find some specific homeless individuals to help.

Contact the Attorney General's Office (AGO). If you are fundraising for a specific individual, you will most likely not have to contact the AGO. However, the AGO in your state may need to be involved if you are planning on fundraising to benefit the public at large or an indefinite portion of the public. Fundraising for a specific individual, or even a defined population, most likely will not be considered charitable fundraising.

• If you have to contact the AGO in your state, you may be required to register your activities and file certain documents. If you are not sure about your activities, contact the AGO just to be safe. You can do so by visiting your state's AGO website and using the contact information found there.
• Even if you are only fundraising for an individual or defined group of individuals, the AGO may get involved if they suspect any fraud or criminal activity may be occurring.^[2]

Opening An Account

Contact your bank. When you have a specific cause and individual (or individuals) in mind, you will need to create an account so donors feel comfortable making donations. Start by contacting your bank and discussing your options. Most banks, especially larger ones, will know exactly how to help you. While you can start an account with any bank, do some research regarding possible fees and other requirements. Choose a bank that offers good financial services and that is convenient for you.

Explain your purpose. As you sit down with a banker, explain why you are opening an account.^[3] Giving your banker an explanation of your purpose will help them recommend the right services. In addition, fundraising accounts may require you to fill out paperwork you wouldn't have to were you opening a more traditional account.

• For example, if you are opening an account on behalf of your friend Jim, who is suffering from lung cancer, tell this to your banker. Explain that you would like to open an account to put donations in to help pay for Jim's medical bills and living expenses.

Title your account. Once your banker has an idea of the services you need, you will start the process of opening the account. While each bank will have different steps, you will most likely be required or asked to name the account. The title you choose should indicate who the beneficiary is. For example, you may title your account something like "Friends of Jim Jones" or "The Bethany Smith Fund."^[4]

• In addition, the name will help donors direct funds to the correct account. For instance, if your friend Betty wants to donate to Jim Jones' account, she could go to the bank you opened the account with and request to deposit money into the "Friends of Jim Jones" account.

Determine who should have access to the funds. One of the most important determinations you will make when you open the account is who will have access to the funds in the account. You need to make certain that each person who has access will be responsible with the funds. Every person you allow to access the account will be able to make decisions about the account, including withdrawing money and closing the account.

• If you are raising funds for a single living individual that is capable and competent, you might consider making them the only signatory. If you need to include others, a relative or legal guardian should be good.
• If you are raising money for multiple individuals, choose a signatory you trust with the funds. Do not allow donors to believe that the bank will manage or oversee the account.^[5]

Use the beneficiary's Social Security number. If you are going to raise funds for a single individual, you should open the account using their Social Security number. You should do everything possible to bring the beneficiary with you when you open the account. In addition, if you are not a relative or guardian of the individual, you should also ask them to come in when you open the account as well.

• If the beneficiary cannot be present when you open the account, a notarized statement from them allowing you to use their Social Security number for the purpose of opening an account may be sufficient. Check with your bank for specific rules.^[6]

Use an Employer Identification Number (EIN) if you have multiple beneficiaries.When you are collecting money for multiple individuals, you should only open one account. This will simplify things, keep costs down, and will make it easier for donors to donate. For example, if you opened an account for every individual, a donor would have to write one check for each individual they wanted to donate to, as opposed to donating to the group as a whole.

• To open the single account, apply for and obtain an EIN. An EIN is used by the Internal Revenue Service (IRS) for identification purposes. You can apply for an EIN as an individual so long as you have a valid Social Security number. To apply, visit the IRS website and complete your application online. So long as you qualify, your EIN will be issued to you immediately.^[7]
• Using an EIN, instead of one individual's Social Security number, will help avoid confusion about who owns the funds and will help avoid tax reporting issues.^[8]

Meet your bank's specific requirements. Apart from the basic requirements, each bank may have more specific requirements you need to comply with. For example, if you plan on publishing the account information (i.e., "mail donations to the "Jim Jones Fund" at "ABC Bank" at the following address...") for the purpose of soliciting donations, you may need approval from the bank before doing so.

• Keep in mind that if you publish the bank account information, it will also be difficult to keep track of donors and donations.^[9]

Keep accurate records. When the account is created and as you move forward, be sure you keep in-depth records regarding the money you receive, who has donated, where it has been deposited, and any payments you make to the beneficiaries.^[10]

• This information may be necessary for tax purposes or if you get contacted by the government about your activities.

Dealing With Special Issues

Memorialize a deceased beneficiary. When you raise money to memorialize someone that has passed away, special issues may arise. You will not be able to use their Social Security number to open an account, so you may need to obtain an EIN. In addition, the name of the fund should describe your purpose, for example "The Sarah Smith Funeral Fund."

Provide gifts to minors. Raising money for minors can be particularly difficult. One issue you might run into is that the minor may not be able to use the funds for the purpose you have raised them for. For example, if you raise money for a child's college expenses, the child will not be able to use that money until they go to college and incur some costs. Generally, you will want to have the child's parent or guardian open the account so they can ensure the money is used properly.

• In this situation, you may want to consider starting a trust. When you do this, you will transfer any money raised to a trustee who will manage the money for the benefit of the child.

Research tax consequences. Recognize that donations made to your cause will not likely be tax deductible for the donor. Unless you have created a 501(c)(3) nonprofit organization, the donations you receive will be considered gifts. Depending on the amount donated, donors may even be responsible for paying a gift tax.

• In addition, you should understand the tax consequences the beneficiary may face. In general, the money raised will not be taxed as income because it is a gift. However, there are exceptions to this rule. Talk with an attorney if you have any questions.
• Also, if you are holding the money in an account that earns interest, there may be some tax liability for that interest you earn. Again, talk with an attorney if you have any specific questions.^[11]

Solicit directly. After you choose a beneficiary and set up an account to collect donations, you will need to start raising money. One of the most effective methods of doing so is to contact possible donors directly. This will give you an opportunity to create a direct and personal connection with the donor. To solicit directly:

• Draft and send appeal letters. These letters should remind the possible donor what your cause is, what your goals are, how the money will be used, and how much money you are looking for from each person. This letter should be personal and might include a story, a description of your efforts, and a clear summary of your operation.^[12]
• Be sure you include specific directions regarding how the person can donate. This may include your account information or other ways to get money to the cause.

Use social media. One way to reach a large mass of people is to use social media for fundraising purposes. This means using Twitter, Facebook, and Instagram. Using social media can increase your exposure, offer instant gratification (i.e., people will see your message immediately), and can be flexible (i.e., you can change messages any time you want). To use social media:

• Engage often, which means make posts daily if possible.
• Post your wish lists, which means be direct about what you are asking for.
• Consider crowdfunding, which means directing people on social media to a website where they can donate.
• Link your social media sites to other sites relevant to your cause.
• Make sure you make donating easy and worry-free.^[13]

Use fundraising sites. Apart from opening a bank account, try collecting donations online as well. In today's world, you can choose from an endless number of websites that offer the ability to advertise a cause that can be directly donated to. This type of fundraising can yield immediate and large results.

• For example, you can set up a PayPal account specifically for personal fundraising. If you do so, you can collect donations quickly and get the word out easily. Once you open a PayPal account, you can solicit donations and have donations sent directly to your online account.^[14]
• Another example is GoFundMe. If you use this site, you will be able to set up a profile that describes your cause. After you create your account, people can donate to you directly by simply clicking on a "Donate Now" button on your GoFundMe page. You can also link up your social media sites with this one to reach a large number of people.^[15]

source : http://www.wikihow.com/Create-Accounts-for-Donation

donating

Posted By Stellar