Page 73 - tmp

TAX YEAR
2019
Charitable Contributions

Charitable Contributions Guide

Charitable Organizations Charitable Contributions

Qualified charitable organizations include nonprofit Deductible as Nondeductible as
Charitable Contributions
Charitable Contributions
groups that are religious, charitable, educational, scien-
tific, or literary in purpose, or that work to prevent cru- • Cash, check, or money • Contribution to a nonqualified
order given to a qualified
charitable organization.
elty to children or animals. charitable organization. • Political contributions.
• Property other than cash or • The value of a taxpayer’s time or
Examples of Qualified and Nonqualified Organizations check given to a qualified services.
Qualified Nonqualified charitable organization. • Gifts to an individual.
• Out-of-pocket expenses • Donations to organizations engaged
• Churches, mosques, temples, • Country clubs, lodges, when serving a qualified in lobbying, for law changes, or for the
synagogues. fraternal orders, and similar organization as a volunteer. taxpayer’s trade or business.
• Boy and Girl Scouts, Boys and groups, unless they are a • Automobile expenses • Tuition at a school that is a qualified
Girls Clubs of America, Red Cross, qualified charity. when serving a qualified charity (but may qualify for education
Goodwill, Salvation Army, United • Civic leagues, social and organization as a volunteer. tax benefits).
Way. sports clubs, labor unions and • Limited portion of expenses • The cost of raffle, bingo, or lottery
• Fraternal orders, if gifts used for chambers of commerce. paid for a student living with tickets (but may qualify as a gambling
loss).
qualified charitable purposes. • Political organizations and the taxpayer under a written • The value of blood given to a blood
agreement, sponsored
• Veterans’ and certain cultural candidates. by a qualified charitable bank.
groups. • Communist organizations. organization. • Adoption expenses.
• Nonprofit schools, colleges, [IRC §170(k)] • Charity volunteer’s travel • Contributions of $250 or more if
museums, hospitals, and • Foreign organizations. expenses away from home, acknowledgement statement is not
organizations trying to find medical Exceptions: Contributions including meals/lodging retained.
cures. to certain Canadian, Israeli, if there is no significant • The transfer of a future interest in
• Federal, state, and local govern- and Mexican charities are level of personal pleasure, tangible personal property.
ments, if gifts are solely for public deductible. See IRS Pub. 526. recreation, or vacation in • The amount of contribution where a
purposes, including nonprofit vol- • Homeowner’s associations. the travel. benefit was received in exchange.
unteer fire departments, and public • Certain contributions to donor-advised
parks facilities. funds.

Contributions That Benefit the Taxpayer Donor-Advised Funds
If you receive a benefit in exchange for a charitable con- A donor-advised fund is a fund or account in which a
tribution, the deduction is reduced by the value of the donor can, because of being the donor, advise the fund
benefit received. how to distribute or invest amounts held in the fund.
Example: Paul made a $70 donation to Public TV and re- Contributions to donor advised-funds. A deduction
ceived a $40 CD of his all-time favorite band, the Herman’s to a donor-advised fund is not deductible if:
Hermits, in appreciation for his donation. His deduction • The qualified organization that sponsors the fund is a
equals $30. war veterans’ organization, fraternal society, or a non-
profit cemetery company, or