With the holiday season quickly approaching, it seems like everyone is slowly chipping away at their holiday shopping. In addition to shopping for friends and family, you can give to your community through a charitable end-of-year donation.
GivingTuesday is the first Tuesday after Black Friday. This year, the date falls on December 3. Giving Tuesday is a movement that unleashes the power of radical generosity by individuals volunteering their time, sharing gratitude, and financially supporting non-profits and community organizations in addition to other acts of service and involvement in the community and around the world.
You can make charitable donations year-round. GivingTuesday is just a dedicated day to remind you to make your donation before the end of the year.
The end of the year is a great time to make a financial donation to an organization that’s impacted your family or community. Why? Charitable donations can be deducted when you file taxes next spring! In other words, a donation to a charity can reduce your taxable income.
Here are the steps to take to make a tax-deductible donation before the end of the year.
First, find a tax-exempt organization. The IRS website has a search feature you can use to find a nonprofit to donate to or to ensure that the one you have in mind is tax exempt. There are over 2,800 organizations in the St. Louis area to choose from.
Next, make your donation. Visit the website of the organization of your choice to make your donation. If you donate through a check in the mail, that’s okay too! Checks, credit card, stock, and options are all eligible forms of donation.
Document your contributions. Regardless of the amount, keep track of your donation. Qualifying documentation includes a bank statement, credit card statement, receipt from the organization, or a canceled check. Your documentation must include the amount, the name of the organization, and the date of the contribution.
If you donated $250 or more in cash or property, you need to get a written letter of acknowledgement from the organization. The letter must include the amount that you donated or an estimated value of the goods, and notice of anything you received in return from the organization. If you made a noncash donation of more than $500, you must fill out a Form 8283, Noncash Charitable Contributions. Remember, all donations must be made by December 31, 2024 if you want to claim them on your 2024 tax return.
Next spring, you can claim your donations as itemized deductions on your tax return. To do so, you’ll fill out a Schedule A form with the rest of your tax return. While filing out this form takes a little time, the IRS has clear instructions to guide you through filling out the form correctly.
That’s it! While you’re doing your shopping this year, take the time to give back to your St. Louis community. Not only will you spread holiday cheer, but you can receive financial benefits from your good deeds too – just in time to get on Santa’s Nice List.