Wondering if your purchase is tax-deductible? Read on...
What Makes a Donation Tax-Deductible?
For any donation to be tax-deductible, it must be made to or for a government organization or subdivision thereof, or a tax-exempt organization as defined by Section 501(c)(3) of the Internal Revenue Code. Therefore, because public schools are subdivisions of a government organization, donations made to or for a public school qualify as tax-deductible Charitable Contributions. Likewise donations made to or for a private school or other non-governmental organization that is tax exempt under Section 501(c)(3), also qualify as tax-deductible Charitable Contributions.
Important to note when purchasing products:
Additionally, when fundraising efforts include purchasing items, such as pretzels or popcorn, the total amount may include a portion that is considered a donation. For example, if the fair value of the item is $15 but the purchase price is $25, the excess $10 is considered a Charitable Contribution and is tax deductible.
Not sure if your private school or non-governmental organization is tax-exempt? Here’s what you should do:
The IRS Exempt Organizations Select Check tool (https://apps.irs.gov/app/eos/) an online resource provided by the Internal Revenue Service (IRS) that allows users to verify the tax-exempt status of nonprofit organizations. This tool enables individuals and organizations to confirm whether a particular nonprofit entity is recognized as tax-exempt under section 501(c)(3) of the Internal Revenue Code. By using this tool, donors can ensure that their Contributions are made to qualified organizations and are eligible for tax deductions.