William Penn Life, 2000 (35. évfolyam, 1-12. szám)
2000-01-01 / 1. szám
ABCs of charitable contributions • Nonprofit schools and hospitals • Public parks and recreational facilities. • Groups such as the Red Cross, Boy Scouts, Salvation Army, Goodwill Industries, United Way, etc. • War veterans'groups. Not deductible as charitable contributions include contributions made to the following: • Civic leagues, social and sports clubs, labor unions and chambers of commerce. • Foreign organizations (except certain Canadian and Mexican charities). • Groups that are run for personal profit. from CPA Client Bulletin If you itemize your deductions, you generally can deduct your contributions of money or property that you make to, or for the use of, a qualified charitable organization. Whether your donation is large or small, but particularly if you get something in return for your donation from the charity, you need to be aware of certain rules. Contributions that qualify for the deduction include donations to the following types of organizations: • Churches, synagogues, temples, mosques and other religious organizations. • Federal, state and local governments if the contribution is solely for public purposes, such as to reduce the public debt. Keep eye out for Y2K glitches You could almost hear a collective worldwide sigh of relief when the new year arrived without any major Y2K-related computer problems. However, experts say minor problems may occur within the next couple of months. To help protect yourself and your finances from any possible Y2K-related problems: 1. Pay attention to your finances. Balance your checkbook regularly. When you get a transaction receipt from an institution, check it for accuracy and compare it against your statement. Review your credit report to make sure it's accurate. 2. Keep copies of financial records. You should always keep good records of your financial transactions, but especially for the last few months of 1999 and until you get several statements in 2000. • Homeowners' associations. • Individuals. • Political groups or candidates for public office. • Cost of raffle, bingo or lottery tickets. • Dues, fees or bills paid to country clubs, lodges, fraternal orders or similar groups. • Tuition. • Value of your time or services. • Value of blood given to a blood bank. Limitation. Your deduction for charitable contributions is generally limited to 50 percent of your adjusted gross income, but in some cases, 20 percent or 30 percent limits may apply. Recordkeeping. Rules regarding what records you keep depend on whether your contribution is less than $250, or $250 or more. If you make a donation of less than $250, you must keep one of the following: 1) a canceled check or a legible and readable account statement that shows if the payment was made by check, electronic transfer or credit card; 2) a receipt or other written communication from the charity showing the name of the charity and the date and amount of the contribution; 3) other reliable written records that were made at or near the time of the contribution, or tokens that are regularly given to persons making small cash donations. If you donate $250 or more, you can claim a deduction for such a contribution only if you have a contemporaneous, written acknowledgement of your contribution from the organization or certain payroll deduction records. The acknowledgement must also state the amount contributed, whether the organization gave you any goods or services as a result of the contribution, and a description and good faith estimate of the value of any goods or services given in return, [pfl Copywright (c) 1999 CPA Client Bulletin. The American Institute of Certified Public Accountants, Inc. Jersey City, NJ. 4 Willi» lm Lile, January 2000
