A simple guide to tax deductible donations
Donating to charity is a great way to support causes you care about. It's also a way to receive tax deduction savings, because the Internal Revenue Service (IRS) allows taxpayers to deduct charitable donations from their taxes.
Reading this guide will help you understand everything you need to know about charitable contributions as tax deductions. (*Please note, this guide is intended for people living in the United States).
Tax deductible donations are contributions of money or goods to a tax-exempt organization such as a charity. As long as you don’t benefit financially or otherwise from the donation, you may be eligible to claim it as a tax deduction.
Simply put, tax deductible donations can reduce your tax bill and taxable income, while also supporting a worthy cause.
There is a wide range of organizations you can donate to, but not all of them qualify for tax deductions. You can verify if an organization is qualified with the IRS Exempt Organizations Search tool. DonorSee and most of our partners on the platform qualify. You can give directly to 100% tax deductible projects here.
In most cases, the amount of charitable cash contributions taxpayers can deduct is limited to a percentage (usually 60 percent) of the taxpayer’s gross income. Although the IRS made an exception to this for 2021 taxes.
The IRS requires proof for all charitable contributions. Without proof, you can only include cash donations less than $300, and you need to provide your bank record or record of the payroll deduction. You will need a receipt for any donation of more than $300 or a donation other than cash.
Luckily, DonorSee automatically issues you with a tax receipt, which is emailed to you when you give.
At DonorSee, we make giving simple, transparent and joyful. All donations on our end-of-year page are 100% tax-deductible so you can reduce your tax bill, while also supporting worthy causes https://bit.ly/3iFAmCT