There is no greater bliss than making other people happy, especially the underprivileged. Donating money, food, clothes, and whatever you can for charity is the best way to give back to society.
Some people believe that charitable organizations do not serve the purpose, or they feel that they misuse the funds. While it might be true with a few shady organizations, it is not the case with all the institutes. You can also donate money to the best pet charity organizations in San Diego.
By donating money to reliable organizations, you will surely feel the sense of satisfaction of sharing joy with helpless people.By making donations, you are not only supporting the good causes, but also saving money on your tax returns.
For this, you need to keep a track of all your donations, cash and non cash. Make sure you collect the receipts of all the donations that you have made in the financial year. This will help you to write off your taxable income.
Donate to Licensed Charities
You need to ensure that you donate to the best charities that qualify as tax exempt organizations. For non-cash or cash donations that you make to a charity, which does not have this status, you will not be able to include it while filing returns.
Thus, before you contribute to a cause, make sure that you verify the status of the organization with the government authorities.
Limitations on Donations
There is a limit on the amount of money that you can donate, and take advantage of reducing your taxable income. Generally, you cannot deduct anything more than 50% of your total earnings in the form of donation.
However, in some cases, you may be limited up to 30% based on the kind of contribution you are making, and to which organization you are donating to. If it is the first time you are filing taxes on your contributions, then it is suggested that you consult an experienced tax advisor.
There are a certain exceptions like, you cannot deduct your personal expenses or value of time spent on volunteering for any charitable organization programs or events. For instance, you cannot deduct your one day's pay, if you have spent a weekend volunteering for any program.