What you need to know to write-off charitable contributions this year

Mary Beth Harrington

Are you starting to feel the holiday spirit? I suspect, along with the ads you are getting a few nonprofit solicitations as well. Some may be requesting donations; others may be inviting you to participate in a fundraiser. You know that donating to a 501(c)3 (not necessarily any of the other 501’s we have discussed) can be a tax donation but are you aware of the rules for this?

According to the IRS, taxpayers who give money or goods to a charity may be able to claim a deduction on their federal tax return, which reduces the amount of their taxable income. To check the status of a charity, use the IRS Tax Exempt Organization Search tool. https://apps.irs.gov/app/eos/

What you need to know

• Qualified charities. To receive a deduction, taxpayers must donate to a qualified charity. Here are examples of things that taxpayers can’t deduct:
• Gifts to individuals
• Donations to political organizations and candidates
• Itemize deductions. To deduct donations, taxpayers must file Form 1040 and itemize deductions using Schedule A.
• Benefit in return. Taxpayers can only deduct the amount of their donation that exceeds the fair market value of the benefit received. If taxpayers get something in return for their donation (like merchandise, meals and tickets to events), they may have to reduce their deduction.
• Property donation. If taxpayers give property instead of cash, they can normally only deduct the item’s fair market value. Fair market value is generally the price they’d get for the property on the open market. Used clothing and household items donated must generally be in good condition or better. Special rules apply to cars, boats and other types of property donations.
• Form to File. Taxpayers file Form 8283 for all non-cash gifts totaling more than $500 for the year.
• Proof of Donation. If taxpayers donate cash or goods of $250 or more, they must have a written statement from the charity. The statement must show:
• Amount of the donation.
• Description of any property given.
• Whether the donor received any goods or services in exchange for the gift.

Nonprofits want you to continue to donate to them, so in most cases, they will provide you with the necessary proof of donation either at the time of the contribution or at the beginning of the year when other tax documents are due. However, if you have any questions, ask the organization before donating.

Nonprofit Spotlight:  Stream Team

The COP26 climate summit in Scotland is entering its second week and if this has raised your desire to be part of helping the environment, we have a local opportunity for you. Stream Team provides free quality environmental education programs, activities and hands-on action projects. Stream Team is funded by the storm and surface water utilities of the cities of Lacey, Olympia and Tumwater and Thurston County.

In 1990, the City of Olympia introduced a new way to involve the public in taking action to protect our local watersheds. The first action project was a stream cleanup on Indian Creek. From this initial effort, Stream Team has grown into a multi-jurisdictional adventure to meet the needs of the community and the need for new watershed educational opportunities. Stream Team includes a cadre of amazing volunteers who care passionately about the Earth and its waters and go out of their way (rain or shine) to make a difference… a really big difference.

Volunteer Opportunity:   Salmon Stream Planting

Join Stream Team and WSU Extension to revegetate hillsides above a recent Thurston County culvert to improve salmon passage!

• Saturday, November 13, 2021
• 9:30 am– 3:30 pm (pst)
• Near 26^th and Sleater Kinney Road NE
• For more details go to https://www.nativeplantsalvage.org/calendar/salmon-stream-planting

Event:  Evergreen's "House of Welcome" turns 25+1

The Longhouse at The Evergreen State College provides a broad spectrum of programming to support Indigenous artists locally, regionally, nationally, and internationally. The Longhouse hosts a wide variety of public programming throughout the year, including an annual community dinner, performances, lectures, films, cultural art workshops, and cultural presentations.

The “House of Welcome,” Longhouse Education and Cultural Center opened in 1995 at The Evergreen State College in Olympia. As a public service center of The Evergreen State College, the Longhouse’s mission is to promote Indigenous arts and cultures through education, cultural preservation, creative expression, and economic development.

25^th Plus 1 Anniversary

Join the Longhouse for a live virtual celebration for their 25th plus 1 Anniversary

• Saturday, November 13, 2021
• 1:00 pm (pst)

For more details got to https://www.evergreen.edu/longhouse/longhouse-events

Mary Beth Harrington, CVA (Certified Volunteer Administrator) lives in Tumwater. She travels the country speaking at conferences and to individual organizations articulating issues facing nonprofits. Send your ideas to her at MaryBeth@theJOLTnews.com