When one donates to a good cause, one of the rewards is a sense of satisfaction or joy in knowing that someone else is better off because of that donation. This is truly a great reward. However, what if you knew there were additional rewards? Would you be more willing to give more often? There are so many people in this country that need help, that numerous charitable institutions have been established for helping the needy. The nice thing about organized assistance is that more help is available to be funneled to those in need. Trying to help an individual on your own is a great thing, but it is certainly easier to donate to charitable organizations that have been organized for this purpose.
When you donate to a qualified charitable institution, you not only receive the great feelings that come with giving, you also get a receipt for the value of the item donated. You can then turn around and claim that value as a deduction on your taxes! This is what is meant by the 'extra rewards' that come from giving to a charity. This is the best of both worlds - giving something that helps someone else and then receiving that tax deduction that helps you. Knowing this, you may be more willing to be charitable in the future.
What kinds of items are considered tax-deductible donations? Your tax adviser is probably your best source for detailed information about what is allowed and what is not allowed. However, donating gently used clothing and household items to groups such as Big Brothers and Big Sisters will get you the right kind of receipt. Giving a bag of non-perishable food items to the U.S. Post Office food drive usually does not get you the right kind of receipt. However, you can verify that the charitable institution you wish to donate through is a 501 (C) (3) which is required to receive valid tax write-offs.
Knowing that you can receive the tax benefits in addition to the joy of giving may help you decide to give larger or more valuable items as donations. For instance, have you ever considered giving away an old car to a charity? This is actually one of the best ways to help others and gain a tangible reward for yourself at the same time. Donating cars is easy to do, and doesn't take very long. Within three business days from your phone call, the charitable organization will usually have your vehicle picked up and your receipt for its value based on its condition will be in your hands. They do all of the work of towing the vehicle and providing the paperwork. A car can go a long way to helping needy families and children, and you will have all the extra rewards that come from donating.
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