Last year, individuals in the United States donated more than $3 billion to charitable organizations, according to a USA Giving report in June. During this holiday season, many people are moved to give to charity. Generosity may be motivated by philanthropic feelings and/or the desire to achieve tax benefits. Whatever the reasons for giving, make sure that tax rules are followed to optimize write-offs.
General Rules
Donations in cash or property are tax deductible only by individuals who itemize their deductions (Code Sec. 170). There is no write-off allowed for those claiming the standard deduction. Deductions are allowed only for gifts to IRS-approved charities (see Publication 78 online at www.irs.gov/Charities-&-Non-Profits/Search-for-Charities). The IRS advises taxpayers to beware of scam organizations that typically arise after a natural disaster (see e.g., IR-2013-90, Nov. 15, 2013, following Typhoon Haiyan).
