Presorted Standard
U.S. Postage
PAID
Canton, OH
Permit. 1005
419 W. High Ave
PO Box 1020
New Philadelphia, OH 44663-5120
WWW.REACPA.COM
D O s & D O N ’ Ts
O F G I F T I N G & D O N AT I O N S
Watch for our podcast on this topic! Episode 11,
“Does Your Dollar Deliver?” will hit iTunes, SoundCloud
DO
DO YOUR RESEARCH. Make sure you
learn all you can about the organization
you are donating to.
KNOW WHERE YOUR MONEY IS
GOING. Find out how the organization
will use your donation.
UNDERSTAND HOW THIS WILL AFFECT YOUR TAXES. Most
people know that making a donation can lead to a deduction on
your taxes, but do you know how much you can claim?
GET DOCUMENTATION. Any donation
of $250 requires documentation (cancelled
check, receipt, etc.) if you’re going to use it
as a tax deduction.
GIVE AWAY APPRECIATED ASSETS, SUCH AS STOCKS.
You get a deduction for full value in most cases and you escape
the capital gains tax on the appreciation.
12
and www.reacpa.com/podcast in early December.
EXPECT A GIFT IN RETURN FOR YOUR DONATION.
To be deductible, a gift cannot be received when making
the donation, including a meal. If the donation was made
at a dinner event, the cost of the meal must be subtracted
from the donation amount.
PAY BY CASH. For tracking and to
prevent fraudulently activity, paying
by check or credit card is usually the
safest.
GIVE RANDOMLY. Do your homework when donating.
Make sure your money is going to a good cause and
being used properly.
GIVE MORE THAN YOU CAN
AFFORD. We all want to help, but
don’t put yourself in a situation
where you donating more than you
can afford.
GIVE AWAY ASSETS THAT HAVE DECLINED IN
VALUE. Doing this will waste the capital loss opportunity for you.