Non Profit Donation
A donation is a gift given by a person for charitable purposes to benefit a cause. Donations can come in many forms such as money, clothes, toys, furniture, food, and sometimes even vehicles. Donations are gifts given without any return consideration. Most people donate to a cause they believe in or simply have a passion for.
It is also possible to donate in the name of a third party, such as giving a gift in honor of someone or something.
Donations to charity are tax deductible expenses. These donations also can reduce a person’s taxable income and lower their tax bill. This of course is something many people do. If you remember in 2010, there was a great coming together for Haiti relief efforts. Your gift must also reach certain criteria in order to be tax deductible.
There are a couple of rules for claiming a charitable deduction. First you must donate actual cash or property. You must also contribute to a qualified tax-exempt organization. Then you must be able to itemize it. Finally, you MUST keep record keeping requirements. This means that you should save your canceled checks, appraisals, or letters from the charity acknowledging your donation.
Some non tax deductible donations would be those donations to a for profit school, to political parties or campaigns, fines or penalties paid to the state or local governments, or fees paid to a professional organization.