Donating to charity is one of the best things you can do for the less fortunate. Not only does it make you feel good about giving away to people in need; your donation can do a lot for these individuals. And of course, there is the matter of enjoying tax deductions too.
Just keep in mind though, that not all items you donate will give you these tax deductions, but the following will:
Talk with your attorney or financial advisor regarding donating stocks to a charity. This is important, as you need access to relevant account information before you can make the donation. In the event you have the stock certificates with you, you have to sign some paperwork, including a stock power form, prior to donation. This signing applies to each and every certificate you want to contribute to your chosen charitable cause.
Instead of throwing out your old but still usable furniture when you have plans of buying new ones, you can donate it to an IRS-approved charity. Big items, such as an entire bedroom set, can give you a write-off of up to $1,000. Dining room sets, functional washing machines, televisions, refrigerators, copiers, and computers among many others are also great items to donate, all of which will help you lower your taxes.
A car donation is one of the most generous gifts you can give to a charitable cause. There are several organizations that allow you to donate a car (as well as other vehicles, like boats, motorcycles, RVs, trucks, etc.) in the easiest way possible. In other words, you do not have to bring the vehicle to the charity’s office; they will pick it up for you through a professional transportation service.
Remember: every time you donate to an IRS-recognized charitable organization, it lowers your taxable income, which means you pay fewer taxes.