Mailing Non-Profit Donations

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HOW DO I DONATE TO THE HASHLAMAH PROJECT FOUNDATION NOW THAT IT IS A REGISTERED NON-PROFIT ORGANIZATION?

Donations to charity are tax deductible expenses. These donations can reduce your taxable income and lower your tax bill. You will need to itemize your tax deductions in order to claim any charity.

“You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions.” (IRS Publication 78)

If you itemize deductions on your tax return, you may be able to take an income tax deduction for a gift to a qualified charitable organization. All taxpayers receive an automatic deduction from the IRS, and it is only when you exceed that deduction that itemizing pays off. The standard deduction is currently $5800 for individuals and $11,600 for married couples filing jointly.

To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A.

http://www.irs.gov/pub/irs-pdf/f1040sa.pdf

WHEN CAN A CHARITABLE CONTRIBUTION DEDUCTION BE TAKEN?

Your donation to a qualified charity is deductible the same year in which it is made. The contribution is considered paid when you put the check in the mail, or when it is charged to your credit card (not when you pay the credit card company). Make sure that your donation is made by December 31 the year in which you plan to claim a deduction.

WHAT CHARITABLE ORGANIZATIONS ARE CONSIDERED QUALIFIED?

Most charitable organizations qualify for tax-deductible donations, but not all. Look for the 501(c)(3) designation to be absolutely sure. Some organizations, such as churches, or very small nonprofits are not required to register as IRS tax-exempt charities in order to receive tax-deductible donations. The charity will tell you if your donation is tax deductible, plus you can search for the charity at the IRS website.

Tax deductions are not allowed for donations to an individual, a foreign government, foreign charities, political parties, political campaigns, or political action committees.

IS THERE A LIMIT ON HOW MUCH I CAN DONATE AND STILL GET A TAX DEDUCTION?

There are no limits on charitable contributions for most taxpayers. Most of us will be able to deduct cash contributions in full up to 50% of our adjusted gross income. There are other limitations that come into play should you make significant contributions of property or appreciated capital gains. If you fall into these categories, be sure to consult with your tax adviser to see if your deductions will be limited.

WHAT DOCUMENTATION IS REQUIRED FOR DEDUCTIONS FOR CHARITABLE CONTRIBUTIONS?

To claim a deduction for cash, check, or other monetary gift, you must have a written confirmation from the charity that contains the name of the organization, the date of the contribution and amount of the contribution. Charities are only required to provide written acknowledgement for donations over $250, but most do provide some sort of receipt no matter what size of donation you provide.

For contributions less than $250, if a receipt has not been provided, a cancelled check or a bank record will suffice. You cannot deduct casual donations that you drop into a charity’s collection box or bucket without a receipt.

The IRS advises, “If you made more than one contribution of $250 or more, you must have either a separate acknowledgment for each or one acknowledgment that lists each contribution and the date of each contribution and shows your total contributions” (from Publication 526).

http://www.irs.gov/publications/p526/index.html

The Hashlamah Project Foundation gives receipts for ALL donations. We also keep records of all donations so if any is lost, they can be resent at the end of the fiscal year!

LIMITS ON CHARITABLE TAX DEDUCTIONS

Your charitable contribution tax deduction may be limited. There are limits specific to charitable contributions, and there are general limits on itemized deductions.

Generally, you can deduct cash contributions in full up to 50% of your adjusted gross income.

Generally, you can deduct property contributions in full up to 30% of your adjusted gross income.

Generally, you can deduct contributions of appreciated capital gains assets in full up to 20% of your adjusted gross income.

To learn more, see IRS Publication 526: Charitable Contributions.

Charitable contributions in excess of these limits can be carried over to the following tax year. The excess contributions can be carried over for a maximum of five years.

HOW DO I DO THIS IF MY TAXES ARE ALREADY BEING TAKEN OUT?

You may be asking yourself, “how do i change my tax withholdings to donate to a non-profit organization?”

If you taxes are already being taken out by your employer, you will need to immediately contact the person at your job who handles such things, in HR or payroll. Simply tell them that you want to change your withholdings because you plan to take deductions.

The IRS website explains as follows:

How Do I Decrease My Withholding?

If your completed Worksheets 1 and 7 show that you may have more tax withheld than your projected tax liability for 2011, you may be able to decrease your withholding. There are two ways to do this. You can:

Decrease any additional amount (Form W-4, line 6) you are having withheld, or

Increase the number of allowances you claim on Form W-4, line 5.

You can claim only the number of allowances to which you are entitled. To see if you can decrease your withholding by increasing your allowances, see the Form W-4 instructions and the rest of this publication.
Increasing the number of allowances. Figure and increase the number of withholding allowances you can claim as follows.

On a new Form W-4, complete the Personal Allowances Worksheet.

If you plan to itemize deductions, claim adjustments to income, or claim tax credits, complete a new Deductions and Adjustments Worksheet. If you plan to claim tax credits, see Converting Credits to Withholding Allowances below.

If you meet the criteria on line H of the Form W-4 Personal Allowances Worksheet, complete a new Two-Earners/Multiple Jobs Worksheet.

If the number of allowances you can claim on Form W-4, line 5, is different from the number you already are claiming, give the newly completed Form W-4 to your employer.

http://www.irs.gov/publications/p919/ar02.html#en_US_2011_publink1000233680

Also see the following “TurboTax” article, which provides a good summary:

http://blog.turbotax.intuit.com/2011/04/07/how-to-adjust-your-withholding/

A FINAL WORD

More than anything else, on behalf of the HASHLAMAH PROJECT FOUNDATION, i wish to extend a very big THANK YOU. We have a LOT of work to do in spreading PEACE and RECONCILIATION, and your donations are the ONLY way that this can happen. Once again, THANK YOU.

PLEASE SEND YOUR DONATIONS TO:

The Hashlamah Project Foundation
P.O. Box 622
Yellow Springs, OH 45387

Or PayPal to Hashlamah@gmail.com and indicate that this is NOT for a purchase, but is a transfer with no fee associated.