What is a 501(c)(3)?
Not all non-profits are the same. In order to deduct contributions you
make to lower the amount of tax you owe or increase the amount of your
refund you must donate to a qualified tax-exempt
organization. 501(c)(3) is a classification given by the IRS to
organizations that qualify for tax-exempt status. Field of Dreams HOPE
Ranch has received this classification, therefore all contributions for
which no compensation is received are tax-deductible (limits may apply).
You may only deduct contributions the year in which
you make them (except from carryovers when limits apply). To learn more
read IRS publication 526 and 1771.
When you donate to Field of Dreams HOPE Ranch you
will be provided with a signed letter and an electronic receipt as
evidence of your tax-exempt donation.
Excerpt from IRS Publication 526, Charitable
Contributions
Qualified organizations. Qualified
organizations include nonprofit groups
that are religious, charitable,
educational, scientific, or literary in purpose,
or that work to prevent cruelty to children or
animals. You will find descriptions of these
organizations under Organizations
That Qualify To Receive
Deductible Contributions.
Form 1040 required. To deduct a
charitable contribution, you must file
Form 1040 and itemize deductions on
Schedule A. The amount of your
deduction may be limited if certain rules and
limits explained in this publication apply to you.
Excerpt from IRS Publication 1771,
Charitable
Contributions—Substantiation and
Disclosure Requirements
explains the federal tax law for organizations such as charities and churches that receive tax-deductible charitable
contributions and for taxpayers who make contributions.
A donor is responsible for obtaining a written
acknowledgment from a charity for any single contribution of $250 or more before the donor
can claim a charitable contribution on his/her federal income tax
return.
A charitable organization is required to provide a
written
disclosure to a donor who receives goods or services in exchange for a single
payment in excess of $75.
You may obtain a full Adobe PDF
document of the above named IRS publications here. Click on the name of
the IRS publication you wish to download:
Publication
526 Publication
1771
|