How to Determine If a Charity Donation Is Tax Deductible?

People can deduct certain donations.

Taxpayers can take a deduction when they donate to charities. There are two main tests to see if the person can deduct the donation. The donation must be to a qualified organization, and the donation must qualify as a deductible donation. Donations will decrease a taxpayer's tax liability.

Instructions

1. Search for the charity you donated to in the Internal Revenue Services charity database. If the organization that you donated to shows up in the search, then your donation can be deducted.

2. Determine if you received anything for your contribution. If you received anything, you can only deduct the amount that is greater than what you received. For example, if you donate $50 and receive a $25 gift card, only $25 is deductible.

3. Check that the donation is not on the list of donations you cannot deduct. According the the IRS, the following are not deductible: "a contribution to a specific individual, a contribution to a nonqualified organization, the part of a contribution from which you receive or expect to receive a benefit, the value of your time or services, your personal expenses, a qualified charitable distribution from an individual retirement arrangement (IRA), appraisal fees, certain contributions to donor advised funds, or certain contributions of partial interests in property."

References

• IRS: Publication 526
• IRS: Search for Charities, Online Version of Publication 78