Knowing more about the charity contributions to be claimed under tax deductions will help to maximize potential savings.
- More than 48% American tax filers use charity contribution to reduce their taxable revenue.
- All the non-profit organizations are not beneficial for lowering taxable income.
- Similarly not all gifts is eligible to qualify as tax deductible charity.
- Charities and the non-profits are legally classified as per their organizational structure and mission.
- IRS registration is needed.
- Alternatively, religious charitable organizations can get tax-deductible gifts without any need for registration but there are some exceptions. [check before contributing]
- Pledge made is not counted as deductible until the money is actually paid.
- During fund raising, if you promise to contribute $25 per month, the monthly payments really paid will count. You cannot claim for $300, if you paid only $200, during tax year.