As 2014 draws to a close, many of our clients are thinking about making annual gifts to charities. The IRS has just posted a handy article with six tips to keep in mind to make sure that you can claim an income tax deduction for the gift. Here’s a summary:
1. Qualified charities. Make sure that you are making a donation to a qualified charity. The IRS offers a tool to make sure that your intended recipient is qualified. Donations to churches, synagogues, temples, mosques, and government agencies are also deductible, even if they’re not listed.
2. Monetary donations. If you want to give a charity money, in cash, or by check, electronic funds transfer, or credit card, you must have a bank record (like a cancelled check) or a written statement from the charity to deduct the gift.