Tuesday, December 24, 2013

End of year tax deductions an oppurtunity for Mosdos and Yeshivos

As the year 2013 comes to a close, many Mosdos and a Yeshivos can benefit greatly from end of year Tax deductions with a charitable giving. One fundraiser said, its his busiest time of the year people are giving more tzedaka now than before Rosh Hashana.  Only difference is "on Rosh Hashana they were looking for a write in, now they are looking for a write off". There are individuals looking to give money away, its a time to reach out to them now.

The charitable contribution must be made to a qualified non profit organization click HERE for IRS tips.


 Itemizing is required, you can give thousands of dollars, but if you claim the standard deduction amount on your tax return, your charitable gifts will do you no tax good. You must itemize expenses on Schedule A to deduct charitable donations. The good thing about donations is that, in most cases, there is no limit on how much you can deduct. You can donate merchandise, stocks, cars and other goods. Cars donated before the end of the year will earn taxpayers a deduction for the amount the charity makes from the sale. If they take it for parts, the donor gets fair-market value. Oorah, and other mosdos have car donation programs.

Donations must be made by the end of the tax year for which you want to claim the deduction. If you put a check dated Dec. 31 in the mail by that day, you're OK. So are donations charged by year's end to your credit card, even if you don't pay the card's bill until the next year

1. If your goal is a legitimate tax deduction, then you must be giving to a qualified organization. Also, you cannot deduct contributions made to specific individuals, political organizations and candidates. See IRS Publication 526, Charitable Contributions, for rules on what constitutes a qualified organization.




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