Five Tips To Use Donations to The Witness Foundation for Tax Returns
Giving to causes we believe in and supporting organizations driving change and addressing inequalities is excellent. However, beyond the fantastic feeling of adding our penny to the fight against injustice and impacting lives through our donations, we can get more value from our year-round donations during tax season. Your donations to The Witness Foundation have been a great way to support young Christian leaders committed to social justice and advocacy. But did you know these donations can also potentially lower your tax burden? Our team put together five tips for using your donations to The Witness Foundation for tax returns.
1. Keep a Record of Your Donation
To claim a tax deduction for your donation to The Witness Foundation, you'll need to keep a record of it. This includes the date of the donation, the amount, and the organization's name. You should also keep a copy of any receipts or acknowledgments that you received from The Witness Foundation when these donations were made. To make this easy for you, every time you donate to the Witness Foundation, you receive a donation receipt in your email. Download and save this receipt. It would come in handy during tax season.
2. Itemize Your Deductions
To claim a tax deduction for your donation, you'll need to itemize your deductions on your tax return. This means that instead of taking the standard deduction, you'll need to keep track of your eligible expenses throughout the year and report them on your tax return. Eligible expenses include charitable donations, mortgage interest, state and local taxes, and medical fees that exceed a certain threshold.
3. Know the Limitations on Charitable Deductions
There are some limitations on the amount of charitable deductions you can claim on your tax return. The general rule is that you can deduct up to 60% of your adjusted gross income for charitable contributions. However, there are some exceptions to this rule, so it's a good idea to consult with a tax professional if you have any questions.
4. Confirm that your donations are being made to a tax-exempt organization.
It's important to note that The Witness Foundation is tax-exempt, meaning your donations are tax-deductible. This means that as a donor, you can claim donations to The Witness Foundation as a deduction on your federal income tax return, which can help you lower your taxable income and potentially reduce the amount of tax you owe.
5. Get a Qualified Account or Tax Professional
Taxes are complex, and no matter how great we are with numbers, you may miss some crucial details. Therefore, we recommend you work with qualified accountants and tax professionals.
In conclusion, donating to The Witness Foundation and other nonprofit organizations can not just help support a great cause; they can also potentially lower your tax burden and put some tax refunds in your pocket. By keeping a record of your donation, ensuring the organization is tax-exempt, itemizing your deductions, knowing the limitations on charitable deductions, and considering donating appreciated assets, you can make the most of your donations for tax purposes.
