Are Canadian donations tax deductible in the US?

How would I make donations accepted by my nonprofit organization tax deductible for the giver?

  • I'm thinking of starting a project that would require monetary donations and also donations of clothing. How could I make these donations tax deductible for the person donating?

  • Answer:

    You have to be recognized as a public charity or private foundation by the IRS. This is a multistep process, where you establish a mission, a board, a budget, obtain state tax exempt status and local tax exempt status, etc. The 501c(3) designation you require is obtained by filing Form 1023 with the IRS. Once you are recognized, donations to your organization are eligible charitable deductions for the donor. IRS Pub 1023: http://www.irs.gov/pub/irs-pdf/f1023.pdf

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Other answers

For the donations that are given to your nonprofit to be deductible you must have a recognized 501(c) (3) organization. To establish such an organization it would depend on the state that you live in. Normally that process is handled by the State Secretary of State. Once you have established the 501(c) (3) you will have procedures to follow to receipt the donations for your donors.

Your organization would have to be declared a 501(c)3 charity by the IRS. See http://www.irs.gov/charities/charitable/article/0,,id=136459,00.html for more info. The answers above that just say to give the donors receipts are NOT correct.

Judy

Give the donors receipts.

regerugged

A receipt issued by your organization is sufficient. It is the giver's responsibility to claim the deduction, if they so choose, on their yearly tax form. Donations of items/goods do not require a dollar amount. The tax preparer has a chart that will determine the amount allowable by the government for clothing and other small items. As a donor, I make a hand-written list of everything I'm donating as I put it into the bag. Then, when I get to the Goodwill center, I simply hand them the bag and the list. They sign the list and write their nonprofit tax # on it and I'm off. That makes it easier on the recipient. Best wishes!

Tammy

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