Taxes and Your Donation
Beyond an investment from your heart, a donation to RMHC can also be a financial benefit come tax time.
Here are some considerations to ensure you get the maximum benefit from your generous donation:
- As a nonprofit corporation, RMHC is classified by the Internal Revenue Services as exempt under IRC Section 501(c)(3) and as a public charity under IRC Section 509.
- Keep records of your donations, including importantly, receipts or letters from RMHC acknowledging receipt of your donation.
- Donations of more than $250 must be supported by record of payment from your bank. (Cancelled check, bank statement, etc.)
- If you volunteer, you cannot deduct the value of your services, but you may be able to deduct some expenses if they are:
- Not reimbursed through your employer or anyone else
- Directly connected with the services you performed
- Expenses you had only as a result of your volunteer work
- Not personal, living or family expenses
- Generally, no more than 50 percent of your adjusted gross income can be deducted. If you donate more, carry that undeductable amount over into the next year.
In addition to donations from individuals, the following ways of giving also qualify for maximum tax benefits
Private FoundationsAs a public charity, RMHC is qualified to receive grants from private foundations. A grant to RMHC will help your foundation satisfy its annual distribution requirements while helping RMHC accomplish its mission of serving children.
Donations of SecuritiesIn addition to donating cash to RMHC, individual donors may make gifts of publicly traded securities. The donor is not taxed on any gain in the property, and the donor may deduct the fair market value of the gifted securities against other income (subject to certain limitations).
Donors should seek the advice of a professional tax advisor. The Legacy Planning department of RMHC will happily assist donors and advisors in structuring their gifts.