Labor Day weekend is known as the end of summer, but it is also known as the beginning of the season of giving, with the Jerry Lewis telethon.
The Desert has always been known as a place with an extraordinarily diverse selection of giving opportunities. Categories include religious, educational, scientific, literary, etc. that are not profit motivated and are beneficial to the public.
On average, people give about 5% of their income. But, to be tax deductible, you need to remember these important items:
1. CONTRIBUTIONS MUST BE TO QUALIFIED ORGANIZATION-You can't donate to an individual, political organizations, or candidates. Also, not all non-profits are eligible, so ask them or check with your tax advisor. Also, if you want to help relatives in other countries, you can't deduct that amount either.
2. CAN'T DEDUCT VALUE OF TIME OR SERVICE-While admirable, if your giving includes your time and expertise, you can't deduct the value of that. You also can't deduct the cost of raffles, bingo or games of chance.
3. CAN'T DEDUCT VALUE OF SOMETHING RECEIVED-If you go to any of the charity events that are so prevalent during our busy season, you can't deduct the value of the meal, entertainment, etc-only the value of what you contribute over that.
4. KEEP RECORDS OF EVERYTHING-For money gifts, keep a record of when you gave the gift, how much, and in what form (check or credit card, etc). If it's through a text, a copy of a phone bill will suffice.
5. RULES FOR NON-CASH CONTRIBUTIONS-New rules apply to non cash contributions-now, if you donate clothing and household items, they need to be in good or better condition, so don't try to claim a deduction for your "junk". If you donate a vehicle, you now can only deduct the actual amount that the charity receives for the sale of that item. If you donate over $500 in property, there's also another form you need to file with the IRS. You do have the ability to donate appreciated assets at fair market value, so for some, this is proper estate planning.
6. THERE ARE LIMITS FOR TAX DEDUCTIBILITY-Depending on whether it's cash or property, limits are up to 50% of AGI.
7. PLANNED GIVING IS AVAILABLE FOR LONGER RANGE PLANNING-Many local institutions and planners can assist with this if you're interested.
