Charitable giving is one of the best ways to help non profit organizations and, at the same time, help your finances. A qualified charitable donation is tax deductible. When you give to a non profit organization, you better make sure that it is a qualified organization so that the amount of your donation will be tax deductible which will help you lower your income tax obligation to the IRS. By lowering your taxable income, you will pay less taxes and save more money. The more taxes you save, the more money you will have to put in your bank account to be used for other purposes.

One of the problems is that charitable giving is not without risk. Your charitable donations are an investment in your community, the nation, and the world. It is wise to be cautious when making your donation decisions so you can avoid scam artists who try to make money by taking advantage of your generosity. You should be wary of non profit organizations that spring up overnight in connection with current events or natural disasters. They usually make a compelling case for your money, but as a practical matter, they usually do not have the infrastructure to get the donations to actually help the affected areas or people. Therefore, before you donate, you should ensure that the non profit organization you are going to help is legitimate.

When you make any donations, you should try to claim the tax deductions. The tax benefit for charitable donations is available for taxpayers who itemize deductions. The IRS reports that about one-third of all taxpayers itemize. Taxpayers who take a standard deduction will not be able to claim the tax deductions associated with charitable contributions. The IRS reminds taxpayers to keep appropriate records to substantiate the value of their gifts. For example, for any single gift of $250 or more, a taxpayer must have a written acknowledgment from the non-profit organization by the earlier of the date the person files the tax return or the filing deadline, including extensions. A person donating property valued at more than $5,000 must have a qualified written appraisal. For more information on how to claim tax deductions properly, you can consult the charitable giving answer book.