Question regarding the donation regulation in USA

Created by belciuge on May 17, 2017, 10:12 a.m.
  • Hi

    I have a question regarding the donation regulation in USA.

    When you donate in USA, to a non-profit organisation, as a physical person, not as a company, do you have the possibility to reduce that donation from your annual tax income?

    In Romania (Central-Eastern Europe), when you want to donate, you complete a form in which you specify the association you made the donation for, the account of the association and its unique fiscal identification code and the revenue office gives the association, 2% of the annual tax income you paid to the state, associated with your salary.

    Thank you for any response,

    Elena


  • Disclaimer first: I am not an accountant or tax lawyer and have no expertise apart from being a US citizen who pays taxes.

    Donations can often be written off (aka deducted from the taxes you owe so you don't have to pay as much tax). The donation must be to a nonprofit organization, most (all?) of which fall under section 503(c) of the US tax code (https://en.wikipedia.org/wiki/501(c)_organization).

    This benefit is strictly a matter of encouraging people to give by making it free to them (because they don't have to pay the same amount of tax dollars they donate). Many people and businesses donate because of this, especially for larger items such as cars. The tax writeoff for a vehicle could easily be worth as much as selling the vehicle, and you still "get" the money, while also supporting a worthy organization.