The 2013 "Guide to Charitable Contributions" digital brochure is provided by Jim Stonick of Federal Direct Tax Services of High Point, NC. If you have any questions regarding starting a business and/or any financial/tax related questions - please don't hesitate to contact Jim personally at (phone) 336-687-5429 or (email) jim.stonick@gmail.com
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Guide to Charitable Contributions
1. 2013
Guide to Charitable
Contributions
Federal Direct Tax Services
200 W Lexington Ave. Suite 102
High Point, NC 27262
Appointments Mon-Sat
Contact Jim Stonick
687-5429
Charitable Organizations Contributions That Benefit the Taxpayer
Qualified charitable organizations include nonprofit If a taxpayer receives a benefit in exchange for a charita-
groups that are religious, charitable, educational, scien- ble contribution, the deduction is reduced by the value
tific, or literary in purpose, or that work to prevent cru- of the benefit received.
elty to children or animals. Example: Paul made a $70 donation to Public TV and re-
Examples of Qualified and Nonqualified Organizations ceived a $40 CD of his all-time favorite band, the Herman’s
Qualified Nonqualified Hermits, in appreciation for his donation. His deduction
equals $30.
• Churches, mosques, temples, • Country clubs, lodges,
synagogues. fraternal orders, and similar
• Boy and Girl Scouts, Boys and groups, unless they are a Auto Expenses
Girls Clubs of America, Red Cross, qualified charity. Deductible out-of-pocket expenses include the cost of
Goodwill, Salvation Army, United • Civic leagues, social and using the taxpayer’s auto in providing services for a
Way. sports clubs, labor unions and charitable organization. Deduct the actual cost of gas
• Fraternal orders, if gifts used for chambers of commerce.
qualified charitable purposes. • Political organizations and
and oil or the standard mileage rate. Add parking and
• Veterans’ and certain cultural candidates. tolls to amount claimed for either standard mileage rate
groups. • Communist organizations. or actual expenses. A mileage log is required.
• Nonprofit schools, colleges, [IRC §170(k)]
museums, hospitals, and • Foreign organizations. Standard Mileage Rate
organizations trying to find medical Exceptions: Contributions
The general standard mileage rate for charity is 14¢ per
cures. to certain Canadian, Israeli,
• Federal, state, and local govern- and Mexican charities are mile in 2012.
ments, if gifts are solely for public deductible. See IRS Pub. 526.
purposes, including nonprofit vol- • Homeowner’s associations.
unteer fire departments, and public Contributions of Property
parks facilities.
If used items were given to charity, such as clothing or
furniture, the fair market value of the items is used to
determine the deductible amount. Fair market value is
Expenses Incurred While Volunteering
what a willing buyer would pay a willing seller when
Out-of-pocket expenses incurred in performing volun- neither has to buy or sell and both are aware of the con-
teer work for a charitable organization (including the ditions of the sale.
charitable mileage deduction) are considered cash con-
tributions. The value of a donor’s time is not deductible.
Planning Tip: Most cell phones today can take pictures.
Take a picture of all items donated. Keep the electronic
pictures for proof the items were in good used condition
or better at the time they were donated.