Donations, Taxes and The Nourafchan Foundation:
Putting Your Donations to Work
When you donate to The Nourafchan Foundation, you receive the benefit of knowing you’re helping to make a difference. But you’re also receiving the benefit of a deduction to apply to your taxes.
Here are some answers to common questions about charity and tax deductions. The Nourafchan Foundation provides this information for your convenience. As always, consult your own tax or financial advisor before making personal financial decisions.
1. When I make a charitable contribution to The Nourafchan Foundation, is that contribution tax-deductible? Absolutely! Every contribution to The Nourafchan Foundation qualifies for 501(c)(3) non-profit status from the IRS — and that means every donation you give counts as a tax-deductible donation. It’s one of the ways The Nourafchan Foundation makes giving easier and smarter for you. When you make a donation through our site, be sure to save and/or print the confirmation e-mail you receive from The Nourafchan Foundation for your tax records.
2. I want my giving to be deductible for this tax year. Do I need to make a donation by a certain time? Yes. Any donation you made on or by midnight December 31 of that year will qualify as a deduction for that year. Any donations made in that year (even at 12:01 a.m. on New Year’s Day) go towards that year’s tax. So if you’re looking for a tax benefit for this year, you’ll want to make that donation before December 31. The good news is that you can donate to The Nourafchan Foundation any day of the week, 24 hours a day. So it’s easy to get in that last-minute donation.
3. Do I need to itemize my tax return to get a deduction for charitable giving? Yes, you do. Donations are only tax-deductible if you itemize deductions on your tax return. When you file your taxes, you’ll need to itemize your donations on the Schedule A of the 1040 form.
4. Is it worth the time and effort to itemize just to get a deduction for charitable giving? The answer to that varies from person to person and is subject to phase outs at higher income levels. Your charitable donations in the form of cash and volunteer mileage may help to lower your tax bill. As with any major tax decision, confer with your own tax or financial advisor so you’re sure you get the most out of all your deductions.
5. How much can I legally deduct on my taxes for charitable contributions? You can only deduct the amount of a contribution given voluntarily, with no expectation of a commensurate return. Generally speaking, you may deduct up to 50% of your aggregate gross income — half of your total income, subject to income phase-outs. There are some specific types of donations (such as gifts of stock, or donations to certain types of organizations) that have lower percentage ceilings.
Additionally, if you receive a financial or economic benefit in return for making a gift, the payment is not a deductible charitable contribution except to the extent that it exceeds the fair market value of the benefit. For example, if you gave $100 to a museum and received a book in return that sells regularly for $25, you can claim $75 as a charitable deduction.
The IRS has a worksheet to help you determine how many of your donations are tax-deductible.
6. I want to donate as much as I can this year. How can I do that, taking my own needs and expenses into consideration? This would be a wonderful time to sit down with your own tax or financial advisor — he or she can help you decide how much you can give this year. There are also a number of online tools that can provide you with a rough estimate for giving, including the charitable giving calculator from the New Tithing Group.
7. I’ve heard that some donations aren’t fully tax-deductible, even if they’re to an IRS-recognized charity. Is that true? Some contributions can be tax-deductible for less than the donated amount if the charity provides you with something of substantive value in return. At The Nourafchan Foundation, we streamline the giving process so that 100% of your donation is tax-deductible — no worries about what’s deductible and what’s not.
8. When I donate, will I get a receipt? When you donate to The Nourafchan Foundation, you will always receive a confirmation e-mail, which will serve as your receipt. You also can print the confirmation page that appears on your computer screen after you’ve completed your contribution—that can also serve as a receipt. You should always keep a hard copy of your receipt for your tax records. A receipt is required as support for any donation. It is a good policy to obtain a receipt for any donation you make and most charities will issue one automatically.
When you file your taxes, you will need to itemize your donations on Schedule A of the 1040 form. You can download this form and the instructions for how to fill it out from the IRS Web site.
Your charitable giving will help so many — and work to your advantage as well. We hope that you’ll consider a donation this year, and let the The Nourafchan Foundation make it easier for you to reap the benefits at tax time.
*Source: Network for Good