Are Political Contributions Tax Credits?
Charitable contributions are not just a good thing to do, they can be a wise tax strategy. Although it seems reasonable to expect that political contributions are for the public good and thus eligible for a tax deduction, this is not so. The only way to receive a tax incentive for political donations occurs when you give to a charity associated with the party or legislator you support.
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Identification
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You cannot deduct any political contribution to a candidate or his party, even as a business expense, as of 2010. This includes donations to committees at any level of government, or an organization that exists solely to support a certain candidate. Donations to an advertising campaign, inaugural event or fund-raising dinner -- even one where all proceeds go to charity -- are also not deductible. You can deduct contributions to a Political Action Committee, called PAC, but not if they try to influence an election in any way. Since most PACs exist to lobby, it is unlikely that a contribution to one would be tax deductible.
Alternative
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You can tangentially support the political process by donating to a tax-exempt organization, called a 501(c)(3). A charity can perform some actions that the average person considers political, such as holding voting registration drives and publishing documents to educate voters on a certain topic, provided these actions show no bias. Also, charities can conduct a limited amount of lobbying. How much time and money a charity can dedicate to lobbying depends on IRS guidelines for the organization.
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Deducting Charitable Contributions
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Even if you donate to a charity that lobbies for a cause you support, you may not be able to take a deduction. All charitable donations must be itemized on Schedule A of the 1040, which means you cannot claim them if you take the standard deduction. Any donations of $250 or more, in either cash or property, require a receipt from the organization with a description of the donation and its value.
Tip
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If you donate between $500 and $5,000 in non-cash property to a charity your candidate supports, fill out IRS Form 8283, Section A. For amounts over $5,000, fill out Form 8282, Section B and receive an appraisal.
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