Each tax season, charitable donations rank among the most common tax deductions used nationwide, and for a good reason. Charitable giving allows taxpayers to reduce their annual tax bill while supporting a cause they believe in.
How do I find qualified charitable organizations in my area?
Looking for a local or national charity? Check out the website Charity Navigator or Charities.org to find a charity that aligns with your passions. A few common causes to consider supporting are: ending childhood hunger, providing animal welfare, reducing homelessness, supporting veterans, and funding cancer research.
Use the IRS’s qualified organization search tool to check if your desired organization will qualify you for a deduction. Although the tool may seem overwhelming (what’s an EIN number?), all you need to do is enter your city and state and hit “search”. All qualified organizations in your city will appear on the results page.
Which Donations Can I Deduct?
Deducting your donations may not be as simple as you think. Per the IRS, deductible charitable donations include contributing money, goods, or services to qualified organizations. The “qualified organizations” caveat was added to prevent taxpayers from taking advantage of the broad definition of “charitable contributions” — for example, attempting to deduct gas money given to a friend.