Donating to a charity benefits you at tax time because you can deduct a percentage of your total charitable contributions from your federal income tax. There are many ways to donate and many forms and requirements to claim those donations, so you might want to consult a tax preparer or tax preparation software for the proper forms and procedures.
An organization must be filed under 501(c)(3) of the tax code to be considered a qualified tax-exempt charity. Religious organizations, while charities, do not need 501(c)(3) status. Consult the IRS’s database for a list of qualified charities. Charities can include non-profit religious, educational, scientific, public safety, amateur sports, animal welfare, and children’s, men’s, and women’s shelter organizations. They may also include public charities, private foundations, and private operating foundations. Political parties, individuals, professional associations, for-profit organizations, and labor unions are not typically considered charities.
You can donate cash, property, household items (clothes, appliances, furniture), vehicles (cars, trucks, boats), and things like art and jewelry. Non-cash items that are worth more than $500 must be accompanied by a qualified appraisal of their value and IRS Form 8283 (PDF). You can also make donations to a specific charity, such as United Way, through payroll deductions. You cannot claim the value of your time working for a non-profit, but you can claim the expenses you incur, such as uniforms or gasoline, while volunteering your time.
Donations must be made within the calendar year of the year you are filing taxes. To claim your deductions you must itemize your donations on IRS Form 1040, Schedule A (PDF). List all your donations and their fair market dollar value. As with any tax claim, keep receipts, bank records, and written communication as proof of donations in the event of an audit.