Many people are focusing on donations by the end of the year. In addition to the holiday-related spending decline that begins with Black Friday's shopping events in shopping malls and online, the end of the year is also a popular time to donate to charities. Not only are charities ramping up their fundraising efforts toward the end of the year, but it is also the last chance to obtain potential tax benefits through charitable donations.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The laws governing charitable donations and taxes are some uncomplicated, and tax reform made changes that will impact those seeking to write off their charitable donations. Below, we'll look at five things you really need to know to make your donations go as far as possible, both for the charity and for your personal finances. "Data-reactid =" 12 "> the laws governing charitable donations and taxes are somewhat complicated, and tax reform made changes that will impact those seeking to write off their charitable donations. Below, we'll look at five things you really need to know to make your donations go as far as possible – both for the charity and for your personal finances.

1. Only donations to eligible charities are eligible for a tax deduction.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Perhaps the most important thing to know for Donors is that to claim a tax deduction for a charitable donation, you must do so to an organization that qualifies as a true charitable organization.All non-profit organizations are not eligible for charitable status under Section 501 (c) (3) of the Internal Revenue Code: for example, donations to political organizations, business leagues, social clubs, fraternal societies and many others entities eligible for non-profit association status are not deductible. "Data-reactid =" 14 "> The most important thing for donors to know is that, to claim a tax deduction for a charitable donation, you must donate to an organization that qualifies as a true charity Under Section 501 (c) (3) of the Internal Revenue Code, all non-profit organizations do not qualify for charitable status. are not deductible.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "To check if your donation will be tax-deductible, you can to make a search this IRS site to see if the entity you want to donate to is on the list of qualified charities. In this way, you will be absolutely certain that the cancellation of your donation will not trigger an audit. "Data-reactid =" 15 "> To check if your donation will be tax deductible, you can perform an audit. search this IRS site to see if the entity you want to donate to is on the list of qualified charities. In this way, you will be absolutely certain that the cancellation of your donation will not trigger verification.

Paper with a red stripe showing the word charity and a hand holding a heart, under a magnifying glass.

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Source of the image: Getty Images.

2. You must detail the deductions to get a tax benefit for a donation

Most people know that donations to charities are tax deductible, but not everyone understands that the deduction is only available to those who have detailed their tax returns. Those who benefit from the standard deduction do not derive any tax benefit from their donations.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This is a bigger problem this year than in the past, because the tax reform has significantly increased the amount of the lump sum deduction in 2018 compared to 2017 levels. This will almost certainly fewer people choose to detailand this will give fewer people a tax benefit through their charitable donations. "Data-reactid =" 30 "> This is a bigger deal this year than in the past, as the tax reform has significantly increased the amount of the standard deduction in 2018 compared to 2017 levels. This will result in almost certainly fewer people choose to detailand this will give fewer people a tax benefit through their charitable donations.

3. You need a donation recognition of $ 250 or more

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Most people give money or chequing as a charitable donation It's easy, but you have to respect the donation requirements of $ 250 or more. all donation that proves that you made the donation, a donation of $ 250 must receive a written acknowledgment from the charity that indicates how much you donated and whether you received something in return from that organization. This will help you understand the net amount that you can deductbecause you usually have to offset your donation by the value of what you receive from the charity in exchange for the donation, unless the donation qualifies for an exemption. "data-reactid =" 32 "> Most people donate money or checks as charitable donations, it's simple, but donations of $ 250 or more must be respected. all donation that proves that you made the donation, a donation of $ 250 must receive a written acknowledgment from the charity that indicates how much you donated and whether you received something in return from that organization. This will help you understand the net amount that you can deductbecause you usually have to offset your donation by the value of what you receive from the charity in exchange for the donation, unless the donation qualifies for an exemption.

4. Many gifts of property require more documentation

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "You can also donate a property to a charity, and Generally, you can deduct its fair market value deductions of $ 500 or more require the preparation of IRS Form 8283, which requires basic information about the donated property. at $ 5,000, you'll need qualified expertise from the property, unless it's a publicly traded stock as a Stock. For donations over $ 500,000, you must attach the assessment to your tax return. "Data-reactid =" 34 "> You can also donate property to a charity and, in general, you can deduct its fair market value Deductions of $ 500 or more If you claim a deduction of more than $ 5,000, you will need a qualified appraisal of the property, unless it is a publicly traded security. Stock. For gifts exceeding $ 500,000, you must attach the assessment to your tax return.

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Do not forget that because of fraud problems, gifts belonging to special categories such as automobiles and other vehicles require special treatment. Your charity should be able to give you details on what you will need to justify your donation.

5. Seniors can donate directly from an IRA

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Finally, a choice that older Americans have to give money to an IRA, those who are 70 years of age or older donate up to $ 100,000 to a charity directly from their IRA. Although you do not get a tax deduction, you will not have to include the amount withdrawn from your IRA as taxable income, as you would if you had kept the money yourself. This transfer can be a great way to use the excess retirement money you do not need to fund a good cause. Data-reactid = "41"> Finally, long-time Americans have the choice to give money to an IRA: those who are 70 or older can donate up to $ 100,000 to a charity directly from their IRA. Although you do not get a tax deduction, you will not have to include the amount withdrawn from your IRA as taxable income, as you would if you had kept the money yourself. This transfer can be a great way to use the excess retirement money you do not need to fund a good cause.

Makes smart

Donating to a charity is an ancestral tradition for many, and it's worth making the effort to make it work for you and for yourself. By knowing the rules governing charitable donations and your taxes, you will be able to make the most of the generosity of the Internal Revenue Service and do more good for the world.

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