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ExpressTaxExempt Blog

Tuesday, June 27, 2017

Give Now, Receive Later: Donate & Get Money Back

At ExpressTaxExempt we respect the services that nonprofits, charities, and exempt organizations provide to their community. These groups help so many from day to day, so “now let us help you!”

As expected, most nonprofit organizations and charities aim to receive donations and contributions from generous givers to support their philanthropic endeavors. One may ask, “Why would a tax company be concerned with donations?” To answer that question, all contributions and donations to an organization qualified by the IRS can be deducted from your tax return when filing. For those that are in charge of collecting donations for your organization(s), this is a great interesting fact to share with your potential donors.

We’ve listed some tips here for you and your donors to utilize to ensure that your contributions  will positively pay off during tax filing and tax return season.  

TIP #1: Make donations to a qualified organization. Deductions on your tax return cannot be made to specific individuals, political organizations and candidates.

TIP #2: Must file Form 1040 and itemize deductions on Schedule A. (Extension Form Available).

TIP #3: Benefits received from contributions, such as merchandise or tickets to a game, can only deduct the amount which exceeds the market value of the received benefit.

TIP #4: Non-cash property or stock donations are usually valued at fair market value. Clothing and household items should be in good used condition or better in order to be deducted.
    • Fair Market Value: The agreed price at which property would change hands between a willing buyer and seller.

TIP #5: Regardless the amount, a bank record or payroll deduction record must be maintained for a contribution of cash, check, or other monetary gift. Written communication from the organization [that received the donation] with the name of the organization stated along with the date and amount of the contribution will also suffice for verification purposes.

TIP #6: For contributions of cash or property equaling $250 or more the following must be provided to claim a deduction:
  • Bank record
  • Payroll deduction record
  • Written acknowledgement from organization
  • **One document may satisfy these requirements**

TIP #7: If the total deduction for all non-cash contributions for the year is over $500, an
IRS Form 8283 must be completed and attached to your return.

TIP #8: Donating items or a group of similar items valued at more than $5,000 must also complete Section B of Form 8283, which will more than likely require an appraisal by a qualified appraiser.


Whether you are responsible for collecting donations for your charitable or nonprofit organization or considering to make a donation, ExpressTaxExempt is here to help you each step of the way and provide beneficial content for you and your organization. Also, be sure to visit ExpressTaxFilings for your personal e-filing needs as well as ExpressExtension to be granted extra time to gather all necessary information. If you need any help at all with the filing process, don’t hesitate to give us a call. We’re available Monday through Friday, 8:30 a.m. to 5:30 p.m. EST, at (704) 839-2321 and through live chat on our site. We also offer 24/7 email assistance at support@ExpressTaxExempt.com.

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