Tuesday, July 27, 2010

I have adopted a family for Christmas and have had several friends donate money. I need advice.?

Some of the individuals that are donating money are asking if it is tax-deductible. I am working with a larger organization, that is where I got my family. I can not make it tax deductible unless I have a tax ID. So, my question. Is this possible? Can I get a tax ID or will the organization I work with be able to give me theirs? I can provide proof that all have given me money and I am going to photocopy all receipts of stuff we buy. How can I go about getting these people proof that they donated where it is official and tax deductible? Any information can help...or even a link to a website. Thank you!I have adopted a family for Christmas and have had several friends donate money. I need advice.?
I have no idea,but God Bless You, how wonderful you are.I have


a real struggle with poverty,but when I have a dollar and someone needs it, it is for them, would be the same if I gave a million. I would not want a tax break.I give from my heart.I have adopted a family for Christmas and have had several friends donate money. I need advice.?
I hope this helps. I copied it from the IRS website.





Guidelines for Monetary Donations





To deduct any charitable donation of money, a taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. A bank record includes canceled checks, bank or credit union statements and credit card statements. Bank or credit union statements should show the name of the charity and the date and amount paid. Credit card statements should show the name of the charity and the transaction posting date.





Donations of money include those made in cash or by check, electronic funds transfer, credit card, and payroll deduction. For payroll deductions, the taxpayer should retain a pay stub, Form W-2 wage statement or other document furnished by the employer showing the total amount withheld for charity, along with the pledge card showing the name of the charity.





Prior law allowed taxpayers to back up their donations of money with personal bank registers, diaries or notes made around the time of the donation. Those types of records are no longer sufficient.





This provision applies to contributions made in taxable years beginning after Aug. 17, 2006. For taxpayers that file returns on a calendar-year basis, including most individuals, the new provision applies to contributions made beginning in 2007.





The new law does not change the prior-law requirement that a taxpayer get an acknowledgement from a charity for each deductible donation (either money or property) of $250 or more. However, one statement containing all of the required information may meet the requirements of both provisions.


To help taxpayers plan their holiday-season and year-end donations, the IRS offers the following additional reminders:





Contributions are deductible in the year made. Thus, donations charged to a credit card before the end of the year count for 2006. This is true even if the credit-card bill isn’t paid until next year. Also, checks count for 2006 as long as they are mailed this year.


Check that the organization is qualified. Only donations to qualified organizations are tax-deductible. IRS Publication 78, available online and at many public libraries, lists most organizations that are qualified to receive deductible contributions. The searchable online version can be found on IRS.gov under, “Search for Charities.” In addition, churches, synagogues, temples, mosques and government agencies are eligible to receive deductible donations, even though they often are not listed in Publication 78.


For individuals, only taxpayers who itemize their deductions on Schedule A can claim a deduction for charitable contributions. This deduction is not available to people who choose the standard deduction, including anyone who files a short form (1040A or 1040EZ). A taxpayer will have a tax savings only if the total itemized deductions (mortgage interest, charitable contributions, state and local taxes, etc.) exceeds the standard deduction. Use the 2006 Schedule A, available now on IRS.gov, to determine whether itemizing is better than claiming the standard deduction.


For all donations of property, including clothing and household items, get from the charity, if possible, a receipt that includes a description of the donated property. If a donation is left at a charity’s unattended drop site, keep a written record of the donation that includes a description of the property and its condition.


The deduction for a motor vehicle, boat or airplane donated to charity is usually limited to the gross proceeds from its sale. This rule applies if the claimed value of the vehicle is more than $500. Form 1098-C, or a similar statement, must be provided to the donor by the organization and attached to the donor’s tax return. See IRS Publication 526, Charitable Contributions, for more information
Talk to the organization that you are working with. If they are a 501(c)(3) nonprofit, they should be able to provide you with a receipt for your donation.

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