Political, Charitable, and Government Gifts

Taxes Blog - JLFranklin Wealth Planning

For many, the inauguration of a new President has sparked a renewed interest in government, politics, and making a difference. Some people find it empowering to donate to causes that serve their passions.

Did you know that you can make a tax-deductible gift to pay down the federal debt and earmark it for a specific federal agency? Below is a summary of the tax treatment for this type of donation and others.

Political Contributions

Happy with your Senator’s stand on the issues and want to reward her with a donation? That’s great. But you cannot deduct contributions made to a political candidate or campaign committee.

Charitable Contributions

The fair market value of cash and non-cash contributions is deductible. However, the deduction cannot be more than 50% of your adjusted gross income (AGI), and the contribution must be made to a qualified organization. If you’re unsure about the status of a charity, look it up on GuideStar, an online source for non-profit data. IRS Publication 561, “Determining the Value of Donated Property,” is a helpful tool for ascertaining the value of non-cash donations, such as clothing, housewares, vehicles, and stock.

Gifts to the U.S. Government

If you want to reduce the public debt, you can make a tax-deductible gift at Pay.gov. Likewise, if you are passionate about helping a specific program in the federal government, you can contribute and take a tax deduction. Here’s a partial list of agencies that could benefit from your gift:

Department of State
National Endowment for the Arts (NEA)
Veterans Affairs (VA): Veterans Health Administration
National Park Service (NPS); donate to specific parks
Marine Mammal Unusual Mortality Event Contingency Fund

Personal Gifts

Personal gifts through sites like GoFundMe or checks written to help needy individuals are never tax deductible.

Preserving the Wealth of Successful High-Tech Community Members
×
Preserving the Wealth of Successful High-Tech Community Members
×
The BE WISE Planning Strategy
×
The BE WISE Planning Strategy
×