How you can claim your tax credits for donations to donee organisations (Donations, grants
GST and income
Keeping records and filing returns
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GST and income tax
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Keeping records and filing returns
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How you can claim your tax credits for donations to donee organisations
From 1 April 2014 you can only claim donation tax credits within a period of four years, following the year in which the gift was made.
If the donation is an unconditional gift
You belong to a charitable organisation and donate money towards a project the group is working on. If your donation doesn’t entitle you to receive anything in return, it’s an unconditional gift.
Donations that are unconditional gifts can include:
- door-to-door appeals and street collections
- voluntary school fees (but not school activity fees).
If the donation is not an unconditional gift
You belong to a charitable organisation and pay to advertise your business in their monthly magazine. This is not an unconditional gift because you receive something of value in return, so you can’t claim a tax credit for it.
Donations that aren’t unconditional gifts can include:
- income from trading activities
- payments made by the Crown or a public authority.
If your koha payments or gifts are tax deductible
Your koha, donations or gifts may be tax deductible if:
- the gift or koha is linked to the giver’s business or taxable activity and
- adequate records are kept to support the payment and linkage.
How to Get Tax Deductions on Goodwill Donations: 15 Steps, tax deductions for donations.#Tax
How to Get Tax Deductions on Goodwill Donations
Goodwill is a large non-profit organization in the United States and Canada with a mission of “enhancing[ing] the dignity and quality of life of individuals and families. ”  Goodwill thrift stores accept donations of clothes, furniture, computers and much more provided they are in serviceable condition. If you itemize your deductions on your tax return, you can deduct these donations to Goodwill, making this a great way to support a good cause while decreasing your tax liability.
Part One of Two:
Making Your Donation Edit
This section gives instructions for making tax-deductible donations. Click here to go straight to the section on filling out your paperwork.
Tax Deductions for Charitable Giving – The Nonprofit – s Responsibilities, tax deductions for
Tax Deductions for Charitable Giving – The Nonprofit s Responsibilities
The words “your contribution is tax deductible” are music to a donor’s ears. While getting a tax deduction is not the sole motivation for most charitable donations, it’s an important factor — indeed, about 85% of all charitable contributions are made by individuals who deduct their donations.
However, not all charitable contributions are tax deductible. Whether a donation is deductible depends on a number of factors — including who the donation is given to, when the donation is made, the purpose of the donation, and the donor’s particular tax situation. An identical contribution may be deductible by one donor, but not by another.
To complicate matters, the IRS has imposed new, even more restrictive rules on donations. These new rules require more documentation and tax filings by both nonprofits and the people making donations to them. In some cases, the new rules limit the amount that the donor can deduct. All this has made the charitable fundraiser’s (and donor’s) life more difficult than it used to be.
Contributions, Donations, and Gifts
The words “contribution,” “donation,” or “gift” are typically used to refer to money or property received from a donor. These words mean essentially the same thing and are often used interchangeably. In the nonprofit world, however, people tend to use the word donation for small gifts — say an item of clothing — and reserve the word contribution for larger gifts — real estate, for example.
Charitable deductions are claimed by donors on their individual tax returns (IRS Form 1040). It is up to the donor and his or her tax adviser — not the nonprofit that receives a donation — to determine how much to deduct, and when and how to deduct it. The nonprofit’s role in the charitable tax deduction process is fairly limited. Subject to some important exceptions, a nonprofit is not required to report donations to the IRS or make any tax filings when it receives a donation. The nonprofit’s main responsibility is to make sure it complies with any substantiation and documentation requirements for the donations it receives.
Is a Donation Tax Deductible?
Whether — and to what extent — a donation is tax deductible depends on a donor’s particular tax situation. Donors, with the help of a tax adviser if necessary, must apply the general deductibility rules to their specific circumstances. Each donor’s situation is unique and will affect how much that person can deduct, or whether a donation is deductible at all. Thus, no matter what role you have at your nonprofit, you should never give a donor specific legal or tax advice on donations. You are not the donor’s lawyer or tax adviser.
This is also why blanket statements in fundraising solicitations or thank you letters such as “your contribution is tax deductible” — while they may be technically accurate and perfectly legal — are often misleading. Instead, in letters to donors you should state that your nonprofit is a Section 501(c)3 nonprofit and (if potentially true) that their gift may qualify as a charitable deduction for federal income tax purposes. Its also a good idea to advise donors to consult with their tax advisers or the IRS to determine whether a contribution is deductible. Never promise or assure a donor that it is.
That said, it is never in a nonprofit’s interest to lose a valuable charitable deduction because the donor didn’t understand the tax rules. Likewise, it is not good for a donor to make a contribution thinking it will be deductible when it is not or that it will save more in taxes than it really will. In either case, you’ll end up with a disappointed or angry donor who may decide not to make any more contributions to your nonprofit.
Teaching About Charitable Contribution Rules
While not everyone at your nonprofit needs to become an expert on charitable contribution tax rules, it is helpful if some key people on your staff — particularly those involved in fundraising efforts — understand the basic charitable deduction rules. This might include your:
- executive director
- development director
- board of directors
- paid development staff
- paid staff in nondevelopment roles
- key writers and editors of your newsletter and other communications
- volunteer coordinator
- volunteers who help fundraise, and
- outside consultants.
IRS rules make some types of donations easier or more advantageous tax-wise than others. This ends up encouraging people to make certain types of donations while discouraging other types. Your fundraising strategies should always take into consideration the tax effect of a donation. You can use fundraising letters, emails, and other communications to explain to potential donors the tax benefits of particular types of donations — for example, in your fundraising letter, you could advise donors of the potential tax benefits of donating publicly traded stock that has gone up in value since it was purchased.
Your nonprofit can also help make sure that your donors understand the current IRS requirements for donations by posting basic information on your website, perhaps in the form of FAQs (frequently asked questions). You can also refer donors to the IRS publication on the subject, IRS Publication 526, Charitable Contributions.
Thank-You Gifts and Other Value Received by the Donor
If your nonprofit provided any goods or services in exchange for a donation — for example, an umbrella in return for a donation, a meal at your anniversary gala, or a fruit basket in return for the donor’s winning bid at your silent auction — only a portion of the donor’s contribution is tax deductible. The donor should not claim a tax deduction for the portion of the donation that paid for the fair value of the goods and services (unless that value was relatively insubtantial, as described under, “Is Your Nonprofit Overpromising Tax Deductions?”).
The technical way of saying this is “The tax deduction is limited to the excess of the contribution over the fair market value of any items received in exchange for the donation.” To help donors estimate the deductible portion of a donation, you can include one of the following statements in a receipt or thank you letter, depending on the circumstances: No goods or services of any value were provided to you in exchange for your donation. Or: The estimated value of goods or services provided in return for your donation is $_____.
In all thank you letters, its a good idea to include the following reminder for donors: Please keep this written acknowledgment of your donation for your tax records.
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Donations to Charities are Tax Deductible, tax deductions for donations.#Tax #deductions #for #donations
The Tax Deduction for Charitable Donations
Even the Internal Revenue Service thinks it s better to give than to receive — at least the IRS gives you a tax break for giving. Donations to qualified charities are considered tax deductible expenses so they can reduce your taxable income, lowering your tax bill.
Not everyone can deduct their charitable contributions, however. You must itemize your tax deductions to claim any charitable donation, and this is typically only in your best interest if the total of all your itemized deductions exceeds the amount of the standard deduction you would receive for your filing status.
How to Claim a Deduction for Charitable Donations
You claim a tax deduction for charitable giving on Schedule A of Form 1040. The schedule isn t just for claiming charitable donations. It includes and calculates all itemized deductions you re eligible to claim so you can transfer the total to your tax return in lieu of the standard deduction. Other possible itemized deductions include things like medical and dental expenses you paid for yourself or your dependents over the course of the year — including insurance premiums — as well as other taxes you may have paid and home mortgage interest.
Rules for Claiming the Charitable Contribution Deduction
The IRS imposes several rules for claiming a deduction for charitable contributions:
- You must actually donate cash or property. A pledge or promise to donate is not deductible until you actually pay.
- You must contribute to a qualified tax-exempt organization. Charities will let you know if they have 501(c)(3) tax-exempt status, but some organizations, including churches and other religious organizations, are not required to obtain 501(c)(3) status from the IRS. They count as qualified charities regardless, as do trusts and non-profit volunteer fire companies.
- You must meet several recordkeeping requirements. This includes saving canceled checks, acknowledgment letters from the charity and appraisals determining the value of donated property.
Keeping Records of Your Donation
Your written records must indicate the name of the charitable organization, the date of your contribution and the amount you gave.
Canceled checks work well because the name of the charity, the date and the amount of the gift are all appear there. Bank statements are good, too, when they show a gift paid by debit card, and credit card statements work when they show this same information.
Charitable organizations will often provide donors with written letters of acknowledgment or receipts. The IRS can disallow charitable donations of $250 or more if you don t have a written acknowledgement from the charity to document your gift. If you make more than one contribution over this amount, you ll need a separate acknowledgment for each one or the single acknowledgment must list each donation in detail with the date you made them.
You have to be able to substantiate the fair market value of goods or property you donate, including vehicles, boats or even planes, and you ll need a written acknowledgment from the charity for this type of gift as well. You must fill out Form 8283 and include this with your tax return if the property is worth more than $500.
Tips for Donating Non-Cash Items
- Make a list of the items you re giving away. You ll need these details for Form 8283.
- Note the condition of each item and arrive at a value. The IRS will allow a deduction for any item that s in good working condition or better. In other words, don t bother to claim a deduction for that old TV in your basement that hasn t worked in years, even if it just needs a single new part. At the very least, you must have it valued in its current condition without the new part. You can use valuation guidelines provided online by the Salvation Army or Goodwill for common items such as clothing, small appliances and other household goods, Save the price tag and/or store receipt to prove the item s value if it s brand new.
- You can claim a deduction for food and groceries, too. You can deduct the cost if you donate groceries to a charity as well. Just be sure to get a written acknowledgement of your donation and keep your grocery store receipt to prove the prices of the items.
- Consider taking pictures of your donations. Having a picture handy of what you donated can be useful, especially if you re donating a lot of items. This isn t technically a requirement, but it can t hurt in the unlikely event that your return is audited. Just snap away on your phone, then send the pictures to your hard drive and save them.
- Prepare your own receipt to prove the donation. If you write it yourself ahead of time, you can simply have it signed when you drop off your items. This way you can rest assured that the receipt is correct and it includes all the information you need.
- Obtain a written appraisal if you re donating property worth more than $5,000.
Limits on the Charitable Contribution Deduction
Generally, you can deduct contributions up to 30 or 50 percent of your adjusted gross income depending on the nature and tax-exempt status of the charity you re giving to. You can deduct contributions of appreciated capital gains assets up to 20 percent of your AGI.
Don t worry if your gifts exceed these thresholds. You can carry the excess over to subsequent tax year. Excess contributions can be carried over for a maximum of five years.
Your deduction may be affected if your AGI is too high, however: $311,300 if you re married and filing jointly, $285,350 if you re eligible to file as head of household, $259,400 if you re single, and $155,650 if you re married but elect to file a separate tax return. If you earn more than this, the total of your itemized deductions is limited to 80 percent of your AGI or 3 percent of the amount by which your income exceeds the limit, whichever is less.
What s Not Deductible
Some contributions aren t tax deductible, including gifts made to:
- Political parties, political campaigns or political action committees
- Gifts donated to individual people
- Contributions to labor unions, chambers of commerce or business associations
- Contributions to for-profit schools and hospitals
- Contributions to foreign governments
That still allows for a lot of charitable giving to whittle away at your tax liability if you want to itemize.
How to Donate Hair
How to prepare your hair. The following applies to all hair donations:
Hair must be clean, dry and not swept off the floor.
Hair must be a minimum 8 inches in length.
Hair should be bundled in a ponytail at both ends or a braid.
Hair should be sent by regular mail.
remember to include your name and address for acknowledgements.
The cut is important. How to make the cut.
Hair must be a minimum of 8 inches long (measure hair from just above the elastic band of the ponytail to the ends).
Wavy/curly hair texture — you may straighten hair to measure.
Hair should be freshly washed and completely dry.
All hair is welcome including coloured and grey hair. It must be a minimum of 8 inches in length. If you are donating your hair , please follow these instructions:
Gather hair at the nape of the neck.
Create 2-4 ponytails with an elastic band. Ensure the band is tight around the hair to keep the hair together after cutting. If the hair comes out of the band, it will not be usable. A second hair band can be placed around the middle of the ponytail to help keep the hair together.
Ensure that the elastic band is just below where you want to cut your hair.
360 Hair (Hair Donations)
360 Hair 100% pro bono work 100% voluntarily work without payment as public service.
Acknowledgment certificate mailed month of January. If verification needed please have hair package mailed singed for.
Wigs for cancer patients (19 yrs and under).
We encourage you to consider sending your hair to 360 Hair as a meaningful way to support someone on their cancer journey. We will prepare and package your hair as per the programs regulations and submit on your behalf.
Please contact us by e-mail if you have a question about the donation program.
Wigs: 01432 760060
Other enquiries / hair donation: 01432 352359
The Little Princess Trust provides real hair wigs free of charge to children across the UK and Ireland that have sadly lost their own hair due to cancer treatment and other illnesses.
The MBE for volunteer groups, given to the Little Princess Trust by Her Majesty The Queen
Thinking of supporting us? Thank you!
Many supporters complete all sorts of challenges and events in aid of the Trust, but often they choose to organise a sponsored haircut. This raises lots of money! It would also be great if the hair you cut off could be used to form part of a wig for a child as well. This will depend on how much you have cut (see the new guidelines below).
We are delighted to have seen a huge increase in hair received following sponsored haircuts. We have made a few changes to our guidelines as we would now like to be able to make more wigs of a much longer length.
All good condition hair that is cut according to our guidelines is sent to the factory in China. Please note that we are unable to guarantee that your hair will definitely be used in the making of a child s wig. This is because the decision whether the hair is suitable or not is up to the specialist wig manufacturer in China and not us.
If your ponytail (plaits are acceptable but ponytails are preferable please) measures longer than 12”/30cm, it will most likely be blended with similar hair and made into a lovely, long wig for a girl. If you’re having your hair cut with the specific intention of donating it, please hang on and grow the length so that it exceeds 12”/30cm.
If your hair measures between 7-12”/17-30cm, it may be mixed with similar hair and made into a shorter wig possibly, when required. Incredibly around 4”/10cm is lost when a wig is made because of the knotting process.
In 2013 pop sensation, Jessie J, kindly donated her hair to us by shaving her head. We were delighted but whilst we acknowledge the gesture from anyone that shaves their head, please note this isn t in any way necessary.
Please see the guidelines and please take these points on board too:
- We cannot provide photographs of a child receiving a wig/pictures of a wig made from your hair.
- We don t sell hair under any circumstances.
- Just having your hair cut for us is fine, you don t have to go for the whole shave!
- If you re under 16, please obtain permission from your parent/guardian before you go for the cut!
- Clean, dry hair in good condition ( no split ends ) from any gender, and of any natural colour
- Straight, wavy, curly, permed or chemically straightened
- Containing the occasional grey (less than 10%)
- Dyed, bleached/highlighted (any dyes must be of a natural colour)
- Ponytails(s) cut a long time ago, preserved in good condition
Image: Mark Soanes, Wanstead and Woodford Guardian
Hair we are unable to use:
- Hair that is less than 7”/17cm in length
- Dyed an unnatural colour (blue, green, purple, dyed red)
- Largely/mostly grey hair
- Afro (the wig-maker is not a specialist manufacturer of Afro wigs. The Trust buys in these wigs separately)
- Hair extensions
- Wash and dry your hair
- Do not add conditioner or styling products
- Put your dry hair into a ponytail(s)
- Secure at both ends with a hair band, and one half way down for good measure!
- Ask your hairdresser to cut above the band(s) nearest your head
- Now have the rest of your hair styled as you wish
- Put your dry ponytail(s) into a clear resealable plastic bag
- Place them in a padded envelope and post using a standard service to: