Tax Benefits of Charitable Giving: Maximize Your Tax-Deductible Donations

altruity November 03, 2021

Make sure you’re getting all the deductions you’re eligible for on your charitable donations.

The primary motivation for charitable giving is to help someone in need. But when tax time comes around, keep in mind that your donations are also tax deductible in most cases!

Keep reading to get a quick lesson on tax-deductible donations, plus how Altruity makes it easy to track your receipts, hit your giving goals, and more!

Here’s the deal with tax-deductible donations

First things first: A charitable donation, as defined by the IRS, is when you give something of value to a qualified organization. If, on the other hand, you give something of value to a family member, friend, or even a stranger, it is considered a “gift” by the IRS, and therefore will not be tax deductible.

Qualified organizations include nonprofit hospitals, religious organizations, government-affiliated organizations, veterans organizations, and any 501(c)(3), which is a nonprofit organization established for charitable purposes.

For those who itemize their deductions, you can generally deduct up to 60% of your adjusted gross income (AGI). Some organizations, however, like veterans organizations and fraternal societies, can have a lower deduction limit anywhere from 20% to 50%.

What if I don’t itemize my tax deductions?

Even if you don’t itemize your deductions, you are still eligible for a tax deduction on your charitable donations!

Most people assume they can’t write off a charitable donation unless they itemize their deductions, but you are eligible for an “above the line” deduction. An individual is eligible for a deduction up to $300 and married couples are eligible for deductions up to $600.

Tax time made easy with Altruity

When you make an online donation through Altruity, your receipts are automatically tracked and saved in your account for you, so you don’t have to do the legwork to find all your receipts in order to get your deductions.

And since the Altruity Foundation is a 501(c)(3), all of your donations are eligible for a tax deduction when you donate through the Altruity platform. You’ll get an instant tax receipt as soon as you donate, no matter which organizations you give to or how many you donate to at one time.

Give smarter with Altruity’s Giving Goals Wizard

When you create an account in Altruity, you can set giving goals for the year using the Giving Goals Wizard feature. You’ll be prompted to input information like your IRS tax filing status, whether or not you itemize your taxes, and your gross household income to help calculate your personalized giving goal. The Giving Goals Wizard will also calculate your estimated tax savings!

With this tool, Altruity can help make sure that you get the maximum deductions possible for your online donations. It’s a win-win!

Want to learn more about Altruity? Create your free account today to get started, and check out our blog for more resources!

Everyone’s tax situation is a bit different, and this article is for informational purposes only. Olithan Solutions Inc. and the Altruity Foundation are not providing tax advice. You should consult your own tax advisor.