Year End Charitable Donation To PRISM Benefits You, Too!

Of course, PRISM appreciates your charitable donations of time, cash and/or needed items throughout the year and regardless your tax benefit. At year end, however, it may also benefit you to give now. We have had a great year, thanks to all of you, and we have helped more people than ever before. Consider these tips our holiday gift to you.

1. Do you itemize your deductions?
   

   It’s important to note that, for individuals, only taxpayers who itemize their deductions on Form 1040 Schedule A can claim deductions for charitable contributions. For anyone who files a short or other form, this deduction is not available. Furthermore, only if all total itemized deductions exceed your standard deduction will you qualify for this tax benefit. You should seek tax advice from a professional, since we cannot advise you in these matters.

2. Is your charitable organization qualified to receive donations?
   

   Also, be very careful before making any charitable donation. Make certain that your donations are made to an organization qualified to receive deductible contributions. The IRS website lists most qualified organizations in Publication 78. PRISM is definitely listed as a qualified organization in Publication 78. Churches, synagogues, temples, mosques and government organizations are not required to be listed in Publication 78, even though they are qualified organizations. In general, foreign charities are not qualified organizations.



Charitable Donation May Have A Tax Benefit To You

3. What is the amount of your deduction?
   

   For your tax benefit, you must quantify your charitable donation. How can you determine the amount of your deduction? Obviously, cash contributions are not a problem. When giving property, such as a car or clothing, the amount of your deduction is generally its fair market value. Contributions of certain property may be limited to what you paid for it. Again, especially if you’re interested in making a substantial donation, seek professional advise before giving.

4. Get a receipt
   

   For charitable donations of cash or property, the IRS won’t allow your deduction if you don’t have a receipt from the charity. Your canceled check, bank statement or credit card statement is sufficient proof for small donations. Donations of more than $250 may require a written acknowledgement letter from the charity. To be deductible, donated clothing or household goods must be in at least “good used condition.” A qualified appraisal of the donated property may be required for property contributions in excess of $5,000.

5. Understand the timing rules
   

   Donations are deductible in the year donated. Donations made before December 31 can be deducted on this year’s tax return. Contributions made by check are deducted in the year they are mailed, since they are considered delivered on the mailed date. On the other hand, credit card contributions are deducted in the year that the charge occurs in your account. Pledges to make a contribution are not deductible until the payment is made.

PRISM cannot provide legal nor accounting advice. We do greatly appreciate your giving and we will do everything we can to make your contribution help as many people as possible. Interspersed throughout this article are images you can click or scan with your smartphone to make your charitable donation now. If you have questions, please, call us now:
763-529-1350

Thank you, for making 2011 a much better year for those dear people in our community during their time of need.