How to Determine What the IRS Considers a Charitable Contribution

Step-by-Step Guide

1. 1

   Step 1: Look at IRS Publication 526

   Generally, the organization must be located in the U.S. or one of the U.S. possessions (like Puerto Rico).
   
   The organization must be charitable, educational, religious, literary or scientific.
   
   Organizations that prevent cruelty to children/animals or develop amateur sporting events also qualify.
   
   Contributions to colleges, museums, medical research organizations and public parks are some examples that are tax deductible.
2. 2

   Step 2: Charitable Contributions

   You can ask the organization if it's qualified.
   
   Check IRS Publication 78, Cumulative List of Organizations, online at www.irs.gov/app/pub-78 to see if the organization is listed.
   
   Call the IRS at (877) 829-5500 to ask if the organization qualifies. , They are as follows.
   
   Make payment directly to the organization, not an individual.
   
   Keep bank records for all monetary contributions.
   
   Any monetary contribution of at least $250 requires a written statement from the charitable organization that includes the date and donation amount. , Calculate the fair market value of a non-cash charitable contribution when you donate it.
   
   For any single item valued at $250 or more, you must have a written statement from the charitable organization as proof that you made the donation.
   
   It should include a description of the donation.
   
   For any single item valued at over $500, get a professional appraisal. , Itemize the charitable contribution on Schedule A of Form
   1040.
   
   Complete and attach Form 8283 for non-cash donations totaling more than $500.
   
   An appraiser must complete Section B of this form if you donated personal property with a fair market value of more than $5,000.
3. 3

   Step 3: online at http://www.irs.gov/publications/p526/ar02.html#en_US_2010_publink1000229641 to understand what types of organizations you can deduct donations to.

4. 4

   Step 4: Verify that a specific organization qualifies.

5. 5

   Step 5: Meet the IRS requirements for monetary donations.

6. 6

   Step 6: Follow the IRS requirements for non-cash charitable donations

7. 7

   Step 7: such as clothing

8. 8

   Step 8: household items and vehicles.

9. 9

   Step 9: Complete the necessary tax forms for what the IRS considers a charitable contribution to deduct it from your taxable income.

Detailed Guide

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