As the year comes to a close, it is the perfect time to think about year-end giving. Particularly in the aftermath of a years-long pandemic, we can help those in need necessary every year but now crucial for many nonprofits struggling to balance increased demand and decreased support — and, meanwhile, save on taxes. Year-end giving is a win-win!
Support Nonprofit Organizations
Charities and nonprofit organizations often rely solely on donations to fund their missions. Interestingly, according to Charity Navigator, half of all nonprofits in the U.S. receive the bulk of their funding during the last quarter of the year. Make the final months of the year count through giving; resolve to champion whatever cause is near and dear to your heart.
When you do, be sure to keep a record of your donation. Taxpayers must have a bank record or some sort of written receipt from the charity, which has the organization’s name, date and amount of the contribution. Other acceptable records include bank statements, credit card statements or canceled checks.
Additionally, the 2020 CARES Act allows you to take a $300 deduction for cash donations to qualifying organizations, which must have a charitable, educational, religious, literary or scientific purpose and be classified by the Internal Revenue Service as tax-exempt, even if you don’t itemize.
Donate Clothing And Household Items
Do you have gently worn clothes or functional household appliances, furniture, furnishings or electronics that you no longer use and could benefit someone else? Why not donate them? If your charitable donation is worth $250 or more, be sure to include a receipt (or written acknowledgment) from the charity, with a description of the items.
Don’t let this holiday season pass you by without giving to those less fortunate. After all, ’tis the season to be generous! Doing so will help others and help yourself when April 15 rolls around.
Guest Author Shauna Osborne first published this article in Stroll Treesdale
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