Happy Birthday Boy Scouts of America

Boy Scouts of America (BSA) was founded on February 8, 1910 by William Boyce.  The mission of the BSA is to prepare young people to make ethical and moral choices over their lifetimes by instilling in them the values of the Scout Oath and Law.  One of the tenets of the Scout Oath is, “to help other people at all times”, and the Scout Law admonishes participants to be helpful. 

Are you also a person who strives to help others?  Do you volunteer your time, money and skills to charitable organizations?  If so, the IRS says that may be a benefit to you!  How?  Keep reading…..

The IRS recognizes contributions of assets to charitable organizations as being tax deductible on your return, if you itemize. Here’s a short list (go to your local PRO-TAX office for more details!).

Money or property you give to:

• Churches, synagogues, temples, mosques and other religious organizations
• Non-profit schools and hospitals
• Non-profit volunteer fire departments
• Public parks and recreations facilities (not entry or usage fees)
• Salvation Army, Red Cross, CARE, Goodwill Industries, United Way, Boy Scout, Girl Scouts, Boys and Girls Clubs of America, etc.
• War veterans groups
• Governments – if your contribution is solely for public purposes (example – as a gift to reduce the public debt)
• An organization for the prevention of cruelty to children or animals
• Costs of a student living with you who was sponsored by a qualified organization
  

Cash (or check) contributions are easily defined.  What about goods donated?  Some folks donate gently used clothing, cars, boats, etc.  The contribution would be calculated based on the Fair Market Value of the item donated.  Donations of property valued at more than $500 will generate a 1098-C from the organization to which you made the gift.

And there are even deductions for your TIME given to a charitable organization!  Yep, if you volunteer your time to a charitable organization, you may be able to deduct some out of pocket expenses!  Example:  You volunteer at the Red Cross once a week.  You drive 30 miles to get to your site, so you can deduct the costs of gas and oil that are directly related to that trip.  If you don’t want to try to determine how much that is, you can instead calculate 14 cents per mile for each visit.

In considering your deductions, you also need to be aware when you receive a premium for your contributions.  If you make a donation, and get something for it you can only deduct the difference between the value of the item and your donation.  For instance, you donate $25 to an organization and receive a $10 movie ticket for your contribution; you can only claim $15 as a deduction.

So, how do you take advantage of this?  KEEP RECORDS!  This is important – while the IRS may allow you to take some deductions without records, it’s ALWAYS a good idea to keep receipts of any contributions you make.  That way you’ll be able to prove your donation to the organization.  Most organizations will happily give you a receipt for any contribution you make to them, whether money or goods. 

For more information, or assistance in properly filing your tax return with charitable contributions, go to the PRO-TAX office closest to you.

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