OUR THOUGHTS ON:

I Want to Help - Is My Texted Contribution Tax-Deductible?

Not-for-Profit

By Maureen Thomas

Recently, millions of people have suffered from the flooding in the Philippines, wildfires in the western U.S., earthquakes, tsunamis, tornadoes, and even the recent power outages that affected states from the Midwest to the East Coast.

Many relief organizations, like the American Red Cross, set up fund-raising drives specifically related to disaster relief. An innovative way to contribute is through sending a text message to these organizations with a designated dollar amount. As long as the organization receiving the donation is considered a 501(c)(3) organization for IRS purposes, the contribution may be deducted on your tax return. The IRS recently came out with guidance on how to claim text message donations. If your telephone bill shows the name of the receiving organization, the date of the contribution and the amount given, it will meet the record-keeping requirement for a charitable tax deduction. If your telephone bill does not contain those details, you can always ask the charitable organization to provide you with a receipt. It’s an easy way to give money to help others, and you receive a tax benefit.

You can see if an organization is eligible to receive tax-deductible contributions by going to http://www.irs.gov/charities/article/0,,id=249767,00.html on the Internal Revenue Service’s website. For more information, please contact your tax professional at Schneider Downs.

© 2012 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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