What Is A Tax-Deductable Donation?

Donating to a charity or ministry means you believe in their purpose and vision. You want your financial gifts to make a difference. Why shouldn’t the gift give back to the giver? That’s what a tax-deductible donation is. 

Tax-deductible donations are contributions of money or goods to a tax-exempt organization such as a charity. They are also known as 501(c)(3) organizations. Tax-deductible donations help to reduce your taxable income.

What Is a 501(c)(3)?

A 501(c)(3) means that a particular nonprofit organization has been approved by the Internal Revenue Service as a tax-exempt, charitable organization.

A unique provision to Section 501(c)(3) organizations, as compared with other tax-exempt entities, is the tax-deductibility of donations.

501(c)(3) organizations are highly regulated. Strict rules apply to both the activities and the governance of these organizations. The organization must not be organized or operated for the benefit of any director, officer, or individual.

According to the IRS, a 501(c)(3) cannot be an action organization either (i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates).

How Can I Claim My Tax-Deductible Donations?

To claim tax-deductible donations on your taxes, you need to itemize your donations on your tax return. If you’re thinking about itemizing your taxes, you’ll need to attach an IRS Schedule A to your Form 1040. 

Schedule A is an IRS form used to claim itemized deductions on your tax return. Itemizing (filing Schedule A) usually will save you money if the sum of your itemized deductions is greater than the standard deduction. Due to ever-changing inflation rates, the standard deduction is changing.

Here Are The Steps to Give a tax-deductable donation:

  • Donate to a qualifying organization

  • Document your contributions

  • Don’t miss out on tax deductions for volunteering

We Are A 501(c)(3) 

Soundview Pregnancy Services is listed as a 501(c)(3) organization making your financial gifts tax-deductible. Consider partnering with Soundview as we continue to impact the lives of women and their unborn children in our community. 

A regular monthly tax-deductable donation helps us establish our annual budget. Your participation in our events with an annual or one-time gift also makes a difference in the free pregnancy services we offer. 

Make a tax-deductible donation to Soundview today and receive tax benefits when filing your income tax. Thanks for supporting us. 

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