Things to Keep in Mind Regarding Charitable Donations

If you or your business makes donations, you should keep the following points in mind. First, you can easily evaluate an organization prior to donating since tax-exempt organizations must make their application for exemption and their tax returns available for public inspection. You may request documents in writing, and the organization has 30 days to respond. Second, if privacy is important to you, know that donor lists are not public information unless the organization is a private foundation or a political organization.

Additionally, use caution in making donations, as not all exempt organizations are eligible to receive tax-deductible charitable donations. To determine eligibility, contact the charity directly or look online at IRS.gov for the Internal Revenue Service Publication 78 and the “Search for Charities” page. If organizations are seeking contributions that are not tax-deductible, the organizations must disclose that fact.

If you suspect improper activities from a tax-exempt organization, you may file a complaint with the Exempt Organizations Examination Division by completing Form 13909 (“Tax-Exempt Organization Complaint (Referral) Form”), located online at IRS.gov.

Dirk A. Beamer
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