Tax Deductions For Charity Donations
Tax deductions for charity donations are a significant incentive for people to donate money as well as valuable items to various worthy causes. The IRS recognizes that many organizations that offer valuable services could not operate without a sizeable portion of their budgets being funded privately. In order to encourage people to continue helping these organizations do their jobs within their communities, the IRS offers tax breaks for the donations.
In order to qualify for tax deductions for charity donations, the charity must be registered as a 501(c) organization. This means that it is a nonprofit entity. If someone is not sure that their favorite charity is registered as a 501(c) organization, a call to the IRS Customer Account Services division for Tax Exempt and Government Entities with the charity's name and address will verify the status. Once a person has this verification, he can offer money or items and take the deductions for the donations.
A few IRS rules apply to tax deductions for charity donations. For example, any donation over $250 must be documented with a receipt from the charity. Also, if a person receive anything in return for a donation, such as a service, merchandise, or admission tickets to a musical or sporting event, that person can deduct only the amount of the donation that exceeds the value of the gift. For example, if someone give $100 to the local PBS station and they give a $20 DVD of a James Taylor performance to that person in return, he can be deduct only $80 as deductions for the donations, not the full $100.
When a person gives an item, such as jewelry or a vehicle to a charity and he wants to take the deductions for the donations, it's necessary to determine the fair market value of the donation. This can be tricky, because many people refer to the item's price when it was bought rather than what it would be worth to a current buyer. If the item's value is more than $5,000, one would need to have the item appraised by a certified professional and submit the appropriate form with his taxes in order to take tax deductions for charity donations. If a person has any questions about how to take full advantage of deductions for the donations, he should consult an accountant or tax adviser. The IRS also has publications that detail the do's and don'ts of deductions for the donations. These can be downloaded from their website.
Tax deductible donations are one way in which people can do good to their community and around the world. Conveniently, now tax payers can give online. It's easier than ever to find the right charity and make a contribution right from a home office or a business. There are no strings attached. Individuals can decide how much they want to give and when to give privately. As people give tax deductible donations, they can also inspect a charity's financial statements and giving policies. Whether online or through the mail, ways to give include through money order, check, or credit card. It's easy to be generous.
Right now is a great time to make a contribution. With the major hurricanes in the Gulf of Mexico and the tsunami in the East, a tax deductible donation is desperately needed. A gift can affect the life of a child in Indonesia or a family in Mississippi. Making tax deductible donations online is a biblical response to such disasters and needs. Deuteronomy 16:17 says, "Every man shall give as he is able, according to the blessing of the LORD thy God which he hath given thee." Many people are without lodging and food. We are blessed with wonderful homes and bountiful food. The more we have, the more we should give. Jesus has called us to give abundantly.
One of the joys of this life is to help someone in need. There are charities directed to those who are suffering from AIDS. Other charities bring the gospel to places in the world that have no witness. Tax deductible donations can help us be a part of these efforts. Imagine giving money for someone who receives food in India. Or giving money for a Bible to be provided to a native in the jungles of Columbia. People can do all this with a tax deductible donation online. Contributors simply need to select their favorite charity and visit their website. Typically, the organization will provide a link for giving online. People just need to provide a credit card number and the amount for the tax deductible donation. In seconds, a gift is provided to that charity and another life is touched by someone's generosity. Some charities will now debit contributor's checking accounts monthly with their permission. Usually, these donors are given special mailings, gifts and club memberships for their contributions. Despite these things, the real reason for giving should be because it is God's calling upon each person.
Child SponsorshipChild sponsorship programs allow people to provide daily, weekly, monthly, or yearly monetary support to children in different countries. This type of program has a valuable reward for those individuals or couples who will sponsor the needy. There are many poor and helpless children who need child sponsorship and are waiting for someone who cares to take them under their wing. "Pure religion and undefiled before God and the Father is this; To visit the fatherless and widows in their affliction, and to keep himself unspotted from the world" (James 1:27).
Becoming a contributor to the welfare of children around the world is the least many Americans can do. America's poorest citizens are just as needy as those in third world countries, so the opportunities are available at hand and for the adventuresome as well. Child sponsorship isn't for the faint of heart because the conditions in which sponsored children live, if experienced first hand by the sponsors, are sometimes horrific and unbelievable. These conditions are not just a third world problem. The disaster in the New Orleans region by Hurricane Katrina has proven the nation's impoverished can become even more impoverished. Many already lived in squalor and could have benefited from child sponsorship programs, but now, children and adults of all ages and status will need help.
Many missions to international sites have taken on new life by getting short term missionaries involved by creating these sponsorship programs. When the short term missionaries go on a mission to the region of their child sponsorship, they get to visit directly with sponsored children, take things to them and observe the living conditions and family, if any. Child sponsorship programs have created a new generation of foster families that are helping thousands of children right where they are, or by bringing them out of their situation and into a new home that cared enough to open their home for the needy. This is a true expression of "religion, pure and undefiled."
When a person is burdened to take on the challenge to provide for a year or more to a child in need, they must accept the responsibilities that go along with that program. To start and finish a child sponsorship term is an honorable accomplishment. But to start and drop out, stop paying support, or fail to meet the needs of the children is worse than never having signed up with the child sponsorship programs at all. One must take their involvement in this type of system very seriously because young lives are counting on this support to help them reach a better life.
Children's charities are organizations created to benefit young individuals with certain problems. Sometimes these organizations will be developed for medical purposes while others are created to provide financial assistance to children in poverty stricken areas, such as those areas struck by war or natural disasters. A children's charity has the task of raising funds in order to support helpless individuals as they cope with problems that children should not have to face.
The idea of a these charitable organizations is important because of the many needs that children will face as they are growing up. One of the most important children's charity organizations is a medical organization, which is set up to provide financial and medical assistance to children and their families when emergencies arise. Many of the famous children's charities support individuals with medical problems like cancer, diabetes, and cystic fibrosis. These are some of the most devastating and life-altering illnesses and diseases that can greatly affect the way a child lives.
Many programs are also organized to assist children living in poverty. These groups often work with individuals living in small countries, war torn areas, and cities that have been struck by major natural disasters. Tsunamis, hurricanes, tornadoes, floods, and earthquakes can have a terrible affect on the livelihood of people, quickly thrusting families into poverty. A great children's charity will provide aid and assistance to youth and their families as soon as tragedy strikes.
Organizations that cater to the needs of youth have the ability to raise funds in order to sustain funding for the many causes that arise. There are a variety of ways that these groups can complete fundraising efforts. Telethons, celebrity auctions, bake sales, and car washes are only a few of the many events that take place everyday to raise funds for the many children's charities that exist throughout the world. These events ensure the fulfillment of the work that the group hopes to accomplish.
Charitable groups are a great way to support the needs of individuals who are unable to support themselves. Many children's charities exist to provide medical or financial assistance to those in need. A great children's charity will provide information about the charity and efforts they are taking in order to ensure a better quality of life for the recipients of donations. As a Christian, it is very crucial to understand the role of charity in daily life. The Bible instructs, "He that hath two coats, let him impart to him that hath none; and he that hath meat, let him do likewise." (Luke 3:11)