Tax Deduction for Charity


Tax reduction       Tax Deduction for Charity is a good idea for your 2016’s financial plan. It is true that for many persons it is not good to think in a gain if you donate for charity. But good deeds have their own reward, they say and  “The laborer deserves his wages” (1 Timothy 5:18). When you donate to any charity, be sure to include the plan to get tax deductions from the Internal Revenue Service (IRS). It does not include only donations in funds (money) but also non-cash gifts or equipment like clothing, books, toys, computers, cars and many other elements that would of use for that particular charitable organization.

       Study also how much would be the reduction of your taxes this year. For some experts, it would not be so much as you think, for example Trent Hamm of Simple Dollar says that “charitable donations do provide a reduction in your taxes, but it’s not the huge reduction that many people often think they are or expect that they are” (Hamm, 2013). In his post, he explains carefully how it works and how much saving you could do according to the total amount of your own incomes and the funds you donate:

So, charitable donations are a great thing and they do offer some tax savings, but you don’t save $1 for every dollar you donate. Instead, you often reduce your tax bill roughly a quarter or so for every dollar you donate. That’s still a great little bonus (Hamm, 2013)

      In this post by TurboTax you can get ideas of how things work for the donation of non-cash gifts like a car. Doubtless, you get more from giving your old car to charity, than just throwing it away. The Charity Organization has to give you the report of the cash they got from its buying. If the organization just uses it, then you have to establish the fair market value that is the estimate of the market value of a property, based on what a knowledgeable, willing, and unpressed buyer would probably pay to a knowledgeable, willing, and unpressed seller in the market – resume: ‘How much would you pay for that car if you have to buy it?

       Now the role of the charitable organization: You have to get the statement that you have donated. You have to show a prove of your good action and the fair market value of the item you gave for charity. Normally, the charitable organization gives you a ‘thanksgiving letter’. It is not just a formality, you will need it to show for your tax deduction. Now well, make sure that the organization is a legal, registered organization and be aware of fraud. In this regard, do not trust in appealing campaigns and wonderful websites. Anybody can do a website today. Scams can even take photos and videos or any child in any street of the world to use it as facade for their criminal behavior. Do not hesitate to request legal information on the campaign or organization you want to support before transferring funds to it.

Don Bosco Tax Deductions

       As for our Projects in Don Bosco Hatrans in Kep Province, you can donate throughout our agencies in United States and Europe. They can provide the due documents for your tax deduction. If you want to make a direct transfer to our accounts in Cambodia, we can send you the ‘thanksgiving letter’ with all the technical details for your use. In such letter we have to write your full name, address, the world ‘donation’ and full description of what you donated and the purpose of the gift. We include also a sentence like this (if it is for USA):

For federal income taxation purpose, this letter acknowledges your contribution. Don Bosco Hatrans Technical School or Don Bosco Kep Children Fund, is a non-profit 501(c)(3), it is a Project of the Don Bosco Foundation of Cambodia, a national and international NGO, registered in the Ministry of Education of the Royal Government of Cambodia (Memorandum of Understanding of DBFC with the Ministry of Foreign Affairs and International Cooperation, MOU, Number 828 OI/MFA/IC, April 13, 2015 and an international organization belonging to the Salesian Congregation of Don Bosco.

     Tax reduction letter model from charity org

       This letter can be sent by digital or hard copy to your address. The donation can be done through a bank transfer – which statement will be sent to you – or any other way of transfers like Western Union (see details of how to make a safe transfer through that means – or the sending of non-cash support such as equipment.

       Agencies that can be useful as for sending of donation in Europe and USA, are:

In this case, please send a notification to management@donboscokep.org to declare that you have sent a donation to the benefit of Don Bosco Hatrans Technical School or Don Bosco Kep Children Fund.

Help by share...Share on Google+Share on FacebookShare on LinkedInShare on TumblrTweet about this on TwitterPin on Pinterest

Tags: , , , , , , ,

Leave a Reply