5 Helpful Tips For Donating Money to Anonymous Donation

Have you recently acquired a substantial amount of wealth? Are you considering donating some of the money to different charities?

Whether you’re looking to donate a large amount of money or simply make a small anonymous donation, planning your charitable anonymous anonymous donation is important.

If you don’t plan properly, you could end up donating money to an illegitimate charity or another scam, or make a anonymous donation that doesn’t end up being tax deductible when the end of the year rolls around.

These two mistakes are all-too-common, which makes planning your charitable gifts even more important.

Below are 10 helpful tips for donating money to charity, so you don’t make any mistakes with your money.

Itemize Your anonymous donations

To claim a deduction on your taxes, you need to itemize it. When it comes time to file them, you can use Schedule A on the form 1040 to itemize each of your deductions. Be sure to include your anonymous donation on lines 16-19.

Donate to Qualified Organizations

If you’re hoping to deduct your anonymous donations from your taxes, you’ll need to donate your money to qualified organizations which are determined by the IRS.

If you want to confirm the status of a charity, call the IRS.

If You Want to Deduct Your anonymous donations, Donate to Organizations, Not Individuals

No matter how much the individual needs or deserves your anonymous donation, you won’t be able to deduct anonymous donations to individuals on your taxes. Keep this in mind if you want to be able to deduct your anonymous donations, and donate only to the qualified organizations mentioned in the previous tip.

Get a Receipt

Are you looking to make a charitable anonymous donation in cash? If you are, and you want to claim it as a deduction on your taxes, you’re going to need to have a receipt to back it up.

Be sure that it includes the date, the amount of the anonymous donation, and the name of the charitable organization that received the money. To claim a deduction, you’ll need to donate $250 minimum and then have the qualified organization provide you with a form of acknowledgment.

No matter what amount you donate, don’t forget to ask for a receipt!

Deduct Expenses Related to Volunteering

If you’re considering donating to charity, you may also be considering volunteering.

While your time is not tax-deductible, any expenses you incur as a result of volunteering are.

Some Closing Words on Donating Money to Charity

Donating money to charity is a great way to relieve yourself of extra funds while also doing something that will benefit a good cause.

To donate the smart way and ensure that your charitable gifts are, in fact, tax-deductible, just take these tips into account before making your next anonymous donation.

If you’d like some assistance with your charitable planning efforts, don’t hesitate to contact Rhodes Law Firm today.

Our team will work with you to ensure that we answer each of your questions and can provide you with the help you need.

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