People always asking you for money, me too. How to determine whether a charity is qualified to receive a charitable deduction is an interesting question. I'm Kristin Bran, and I'm going to try to help you with that. You can't just give money to the kid on the corner with a lemonade stand, that's just being nice. The key to actually being able to deduct that money is to determine whether the charity has been qualified as a 501c3. These organizations have actually gone through a specific process with the IRS in order to be considered able to solicit these donations. They should actually be able to provide you with the letter that states that this is the case. Some examples where you may run into this are churches, registered charities, hospitals, government units, and publicly supported organizations. These are the kinds of things that typically will have fundraising events, such as the Boys and Girls Club, Big Brothers and Big Sisters. These are the kinds of places that typically are soliciting things in a more organized manner, so those are the kinds of things that you can look for. They should always be able to provide you a letter fast, and typically if the donation is over a hundred dollars, they are required to. You're also required to keep that documentation in order to deduct your taxes in case anyone ever takes a closer look. I'm Kristin Bran, and that's how to determine whether a charity is qualified for a tax-deductible donation.
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Video instructions and help with filling out and completing When Form 8854 Charities
