Tax Tips: Maximize Your Donations
Emily Pan, a partner in the Cincinnati office and a member of the tax group, authored an article for the Cincinnati Business Courier titled “Tax Tips: Maximize Your Donations.” The article included eight tips for ensuring that charitable contributions are deductible for income tax purposes.
The article states:
“1. Qualified charitable organizations. You can deduct contributions made only to qualified charitable organizations. These are organizations that are exempt from federal taxation. Because not all nonprofit organizations are exempt from federal taxation, don’t be afraid to ask the organization if it is a qualified charitable organization. If it is, then the charity should be able to provide you with confirmation. The IRS also has a website where you can check the exempt status of an organization. Remember, gifts or donations to individuals are not deductible.
2. Timing matters. For your contribution to be deductible in a particular tax year, you must have made your contribution before the end of that tax year. Let’s say in 2017 you pledge $3,000 to your favorite charity to be paid in equal installments over three years. You may only deduct in 2017 the actual amount you paid toward your pledge in 2017.”
To read the entire article, visit the Cincinnati Business Courier website. (Subscription may be required).