What are types of qualifying charities eligible to receive donations that can be deducted for taxes?
Taxpayers are allowed to deduct contributions made to charities only if they are made to a qualified organization. To become a qualified organization for charitable tax deduction purposes, organizations (other than churches) must apply to the IRS and receive a special charitable status.
The easiest way to find out whether an organization qualifies for tax exempt donations is asking the organization for its tax- exemption certificate.
Making a charitable contribution to the following types of organizations are generally tax deductible:
- Nonprofit schools
- Charitable Organizations such as Goodwill, the Red Cross, United Way, Boys and Girls Clubs, and Habitat for humanity
- Religious organizations, including churches, synagogues, mosques, and other places of worship. It is essential to keep accurate records of what is donated and if there are any membership fees associated with being a part of these religious organizations for purposes of the charitable contribution tax deduction.
- Public park and recreational facilities
- War veterans’ groups and police organizations
- Federal, state, and local government — if your charitable contribution is only for public purposes. Donating to a political campaign would not be eligible for the a charitable donation deduction.
Types of Qualifying Charities Eligible to Receive Donations
For charitable donations of $250 or more, you must have a receipt from the charity that shows the date and amount of the gift, and a statement of the value of any goods or services you received in exchange for your donation. For contributions under $250, a cancelled check would be enough to substantiate any charitable deductions on IRS audit. The key thing is being able to back up what types of contributions that you made to a qualifying charity if asked by the IRS.
Because this is the case, it might be a better idea to donate a check that can be proven instead of cash with not receipt to maximize the possibilities that a charitable deduction to a qualifying charity is in fact a tax deduction.