Charitable Donations: Tax Exemptions On Gift Contributions

Charities are businesses as well.


Dedrick C.

a year ago | 1 min read

Photo by Markus Winkler on Unsplash

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. 


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Dedrick C.

Dedrick C. is an indie author, ghostwriter, content creator, and artist expressing his perspectives through evocative literary artistry in all genres and literary works.







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