Donating to Charities? Do it RIGHT! Donation basics to ensure a tax deduction
D onating to charity not only helps others, it can reduce your tax bill — but only if the charity qualifies as a tax-exempt organization. Checking for qualified status If you plan on itemizing your deductions on your tax return, make sure the organization you're donating to is designated by the IRS as a 501(c)(3) organization in good standing. You can find a list qualified 501(c)(3) organizations on the IRS website. Remember, even last year's qualified organizations could lose their non-profit status if they do not submit their annual tax filing! Is it a good charity? Ensuring a tax-exempt status is not your only step. You should also conduct research on your charitable organization. There are many websites that evaluate organizations, how they spend their funds, and how efficient your donation is being used. So check out your charities on sites such as Charity Navigato r , Charity Watch and BBB Wise Giving Alliance . Get your documenta...