Charitable Donations: Tax Exemptions On Gift Contributions
Charities are businesses as well.
A non-profit organization is a group organized to generate profit, and no part of the profit generated is distributed to directors, members, or officers. The purpose of non-profit organizations is to provide services that improve the quality of one's life socially, financially, spiritually, emotionally, and mentally on local to international scales. There is a multitude of charities that provide a variety of services to those in severe need or distress.
However, non-profit organizations are also considered businesses and have specific legal requirements to be considered non-profit organizations. Moreover, non-profits could offer donors something in return for their priceless donations. What can non-profits offer donors for giving them their hard-earned money? A 501(c)3 tax exemption receipt means donors can claim a deduction on their federal taxes. What a tax deduction does for individuals and businesses is reduce the income subject to tax. A tax exemption helps individuals and businesses save money.
Aside from money 501(c)3 tax exemption, any legitimate charity will have a 501(c)3 status and public reports by the Better Business Bureau. Though charitable donations are generous gifts offering donors the opportunity to save money for helping others is a genuine gift in return. Before donating to any charity, check their 501(c)3 status and read literature on through the Better Business Bureau or Charity Navigator.
Dedrick C. is an indie author, ghostwriter, content creator, and artist expressing his perspectives through evocative literary artistry in all genres and literary works.