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As the year draws to a close, savvy taxpayers are looking for ways to minimize their tax burden and maximize their charitable impact. Year-end tax-deductible donations offer a win-win solution, allowing you to support essential causes while reducing your taxable income.
This guide will help you navigate your year-end giving to optimize your tax savings and help people, pets, and the planet through Greater Good Charities.
What are Tax-Deductible Donations and How Much Can You Deduct?
A tax-deductible donation is a contribution of money or goods to a qualified 501(c)(3) organization that can be subtracted from your taxable income. Generally, you can deduct up to 50% of your adjusted gross income, though limitations apply in some cases.
Are donations to Greater Good Charities 100% tax deductible?
Greater Good Charities is a recognized 501(C)(3) charitable organization. Donations are 100% tax-deductible.
How can I make donations?
While traditional cash and check donations are most immediate, there are additional ways you can contribute to Greater Good Charities to maximize your tax benefits.
- Employer Matching: Double your impact by leveraging your employer’s matching program for your Greater Good Charities donation.
- Donor-Advised Funds: Gain flexibility and tax advantages by establishing a donor-advised fund.
- Stocks and Cryptocurrency: Donate appreciated stocks or cryptocurrency to avoid capital gains taxes.
- Vehicle Donations: Give your used car or vehicle a second life while claiming a tax deduction.
- Monthly Donations: Spread your giving to Greater Good Charities throughout the year by making a monthly donation and enjoy consistent tax benefits.
What are the IRS Rules for Year-End Giving?
To be able to deduct a monetary donation, you must ensure you have proper documentation.
- Cash Donations: Bank statements or receipts suffice for most contributions.
- Non-Cash Donations: For donations exceeding 0, obtain a written acknowledgment from Greater Good Charities with details about the value of the goods and services received.
- Donated Items Over 0: Form 8283 and an appraisal are required for deductions at this level.
Can I Make a Tax-Deduction for Volunteering?
While the IRS doesn’t allow deductions for your time, expenses related to volunteering can be claimed.
- Mileage to and from volunteer events and donation sites.
- Costs incurred for materials or supplies used during volunteering.
What is the last day to make charitable contributions?
Make sure your Greater Good Charities donations count for the 2023 tax year.
- Web Donations: Submit your contribution by 11:59 PM ET on December 31.
- Mail Donations: Ensure your donation is postmarked by December 31.
- Stock: The day the broker transfers the gift to the charity.
- Option: The day the option is exercised by the charity.
By following these guidelines and staying informed about IRS regulations, you can make your year-end donations a powerful tool for both tax savings and charitable impact to Greater Good Charities.
Note: This is not legal or financial advice. Individual situations may vary. We recommend consulting with a financial advisor or tax preparer before filing taxes.