In Actor Speak

Keep this in mind at all times when you make your contributions.

Tax Tips on Charitable Contributions

To help make sure your contributions pay off on your tax return:

To be deductible, contributions must be made to qualified exempt organizations. Organizations can tell you if they are qualified and if donations to them are deductible. Sorry, but the homeless person with their hand out on the street is NOT a qualified exempt organizations.  We aren't saying not to help them out, but just to understand you can't write off the gift.

Only contributions actually made during the tax year are deductible. This includes credit card charges and payments by check which are deducted in the year they are given to the charity, even though you may not pay the credit card bill or have your bank account debited until the following year.

A person donating property valued at more than $5,000 must obtain a qualified written appraisal.

You cannot deduct dues, fees, or assessments paid to country clubs and other social organizations

Those who donate their cars may also claim only the fair market value of the car. The fair market value takes into account many factors, including the vehicle’s condition. The fair market value may differ substantially from the car’s Blue Book value. For vehicle donations, taxpayers must document the both the car donation and its fair market value.

When you write off a contribution for donations other than cash or check, such as clothing, furniture and such, you must be able to detail all the items, the original purchase date, the original cost and the "street value" of each item you are claiming on the goods at the time of donation.  It is not sufficient to get a receipt for "three bags of clothing" from Goodwill, the Salvation Army or the like. You also need to be able to verify the above information for all of the items in those bags.

We can't speak too highly of them.

For Contributions of Goods, we recommend:

National Council of 
Jewish Women

"Council Thrift Shops"

To make a donation and/or schedule a pick-up, please call (800) 400-6259 or (323) 655-3111

Think Thrift

Council Thrift is now on E-Bay! Ranked "one of the top ten thrift shop operations in the country" by The Rag Street Journal, NCJW/LA’s Council Thrift Stores are a treasure trove of used designer clothing for women and men, accessories, jewelry, appliances, furniture, vintage clothing, and collectibles. Dedicated shoppers include Hollywood costumers, actors, musicians and antique aficionados - many of who are also our regular donors. "It’s an addiction," laughs actor/comedian Andy Dick, who scours the stores regularly for personalized bowling balls.

Founded in 1924 as a result of the Immigrant Aid Program, the first NCJW/LA Council Thrift Store was stocked with useful household items. Now, at the start of a new millennium, NCJW/LA’s Thrift Department encompasses eight stores and receives more than 50,000 donations annually.  Revenues generated by the stores, and our semi-annual Fabulous Flea help fund vital community service programs for at-risk women, children and families.

Council Thrift Shop Locations in the Los Angeles Area:

All Council Thrift Shop locations are open seven days a week.
800-400-6259

LOS ANGELES

21716 Sherman Way
Canoga Park, CA 91303
(818) 710-7206
Get map

Back to Topics

In the Words of the IRS:

Types of Qualified Organizations

Generally, only the five following types of organizations can be qualified organizations

1) A community chest, corporation, trust, fund, or foundation organized or created in or under the laws of the United States, any state, the District of Columbia, or any possession of the United States (including Puerto Rico). It must be organized and operated only for one or more of the following purposes

a) Religious

b) Charitable

c) Educational

d) Scientific

e) Literary

f) The prevention of cruelty to children or animals

Certain organizations that foster national or international amateur sports competition also qualify

2) War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions

3) Domestic fraternal societies, orders, and associations operating under the lodge system

Note. Your contribution to this type of organization is deductible only if it is to be used solely for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals

4) Certain nonprofit cemetery companies or corporations

Note. Your contribution to this type of organization is not deductible if it can be used for the care of a specific lot or mausoleum crypt

5) The United States or any state, the District of Columbia, a U.S. possession (including Puerto Rico), a political subdivision of a state or U.S. possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions

Note. To be deductible, your contribution to this type of organization must be made solely for public purposes

Example 1. You contribute cash to your city's police department to be used as a reward for information about a crime. The city police department is a qualified organization, and your contribution is for a public purpose. You can deduct your contribution

Example 2. You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. Because the trust fund is part of the U.S. Government, you contributed to a qualified organization. You can deduct your contribution

Examples. The following lists gives some examples of qualified organizations

Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations

Most nonprofit charitable organizations such as the Red Cross and the United Way

Most nonprofit educational organizations, including the Girl (and Boy) Scouts of America, colleges, museums, and daycare centers if substantially all the child care provided is to enable individuals (the parents) to be gainfully employed and the services are available to the general public. However, if your contribution is a substitute for tuition or other enrollment fee, it is not deductible as a charitable contribution, as explained later under Contributions You Cannot Deduct

Nonprofit hospitals and medical research organizations

Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs

Generally, you can deduct your contributions of money or property that you make to, or for the use of, a qualified organization. A gift or contribution is "for the use of" a qualified organization when it is held in a legally enforceable trust for the qualified organization or in a similar legal arrangement

The contributions must be made to a qualified organization and not set aside for use by a specific person

If you give property to a qualified organization, you generally can deduct the fair market value of the property at the time of the contribution. See Contributions of Property, later

Your deduction for charitable contributions is generally limited to 50% of your adjusted gross income, but in some cases 20% and 30% limits may apply. 

The total of your charitable contributions deduction and certain other itemized deductions may be limited. See the instructions for Form 1040 for more information

1) You get a small item or other benefit of token value

2) The qualified organization correctly determines that the value of the item or benefit you received is not substantial and informs you that you can deduct your payment in full

The organization determines whether the value of an item or benefit is substantial by using Revenue Procedure 90–12 and 92–49 and the revenue procedure with the inflation adjusted amounts for the current year

Written statement. A qualified organization must give you a written statement if you make a payment to it that is more than $75 and is partly a contribution and partly for goods or services. The statement must tell you that you can deduct only the amount of your payment that is more than the value of the goods or services you received. It must also give you a good faith estimate of the value of those goods or services

The organization can give you the statement either when it solicits or when it receives the payment from you

Exception. An organization will not have to give you this statement if one of the following is true

1) The organization is:

1. The type of organization described in (5) under Types of Qualified Organizations, earlier, or
   
   

2. Formed only for religious purposes, and the only benefit you receive is an intangible religious benefit (such as admission to a religious ceremony) that generally is not sold in commercial transactions outside the donative context

2) You receive only items whose value is not substantial as described under Token items, earlier

3) You receive only membership benefits that can be disregarded, as described earlier.

Back to Topics