How to Deduct Political Contributions

You cannot deduct political contributions for federal elections, and most state revenue agencies do not allow deductions for state or federal political contributions. You also cannot deduct contributions made to organizations that directly lobby for political candidates or specific legislative bills. However, if you interpret "political contributions" a little more broadly, you can monetarily influence public policy and public awareness and still get the deduction you are looking for. All you need is a little information about the difference between 501(c)3, 501(c)4, and other 501(c) organizations. In other words, you need to find and identify organizations that support your political cause indirectly, so that you can get your money back come tax season.

Difficulty: Moderately Easy

Instructions

Deducting Political Contributions

1. Identify the political candidates that support your particular views and pet issues. Also identify the types of legislative bills you would like to see passed by your local, state or federal government.

2. Seek out 503(c)3 and 501(c)4 organizations that seem to support your philosophies. A 501(c)3 organization is one that does not directly lobby for a candidate or bill. A 501(c)4 is one that is allowed to spend up to $1,000,000 a year on lobbying. Both tend to do research and publish material advocating for certain positions and political philosophies. All other 501(c) bodies are governed by specific sets of rules about whether you can deduct contributions and how much.

3. When making a contribution to a 501(c)3 or 501(c)4 that supports the same philosophies as you do, ask them whether your contribution is tax-deductible. Ask them whether they research, publish, and/or lobby on behalf of the political views you espouse. As discussed in step two, all other 501(c) bodies are governed by different tax-exempt rules. Inquire about deductibility when contributing.

4. Read "Tips for Deducting Charitable Contributions" at the IRS website. The information provided there is incomplete, but it does give a decent synopsis of the IRS's public stance on tax deductions. Remember: The IRS is in the business of collecting money from you, not teaching you how to lessen your tax burden.

5. Read the Wikipedia entry on 501(c) organizations. There are 27 types of 501(c) tax-exempt organizations recognized by the IRS. Learn how you can contribute to each of these organizations and how your money will indirectly affect politics.

Tips & Warnings

• Some states have instituted publicly funded campaigns. When filling out your tax form, look for a check box to indicate whether you would like to earmark a few bucks' worth of public money (usually about $5) to publicly funded campaigns, at no cost to you.
• Some organizations, such as the so-called "527 groups," have come under fire from the Federal Election Commission for walking the thin line between public and private advocacy. Money donated to these types of organizations are not tax deductible.

Resources

• IRS Tips for Deducting Charitable Contributions
• IRS Table of Contents for Charitable Contributions Guidelines
• Wikipedia Entry about 501(c) Organizations
• Wikipedia Article on 527 Groups
• Related eHow Article

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