In this blog: Get complete information about non-profit tax exemptions under 501(C)(3) in the USA. Understand what donations and charities can help you avail of the tax deductions.
Ever wondered what you can get by making charity in the USA? Well thanks to govt, one can now easily get the deductions under various tax exemptions. Before we proceed to understand what all donations fall under the deductions category. Let’s understand the list which is excluded.
Related Blog: Tax Deductions Under Sec 80G (GGA & GGC)
Non Profit Tax Exemptions Under 501(C)(3) – Exclusions
The information mentioned is upon the best knowledge as per the recent tax amendments announced in the USA. However, we seek user discretion in this regard.
- Donations to all Non-profits are not charitable trusts. Well, all the nonprofits need not necessarily need to be a charitable organization. So, the tax deduction isn’t levied on charitable donations.
- Fundraising event Tickets, gifts, etc are fully excluded under tax deductions 501(C)(3). No exemption of tax will be given for any such activity.
- Future dated cheques and payments cannot be a non-profit tax exemption today. Well it’s crystal clear fact that the donations if made in future (via cheque issued today)
Non-Profit Tax Exemption Under 501(C)(3) – Inclusions
The following donations are exempted on a conditional basis. Viewers are recommended to go through the entire documentation of the sec. Click here to view the know-how of sec 501(C)(3),
- Donations to all verified Charitable organizations, not just Non-profits.
- The organizations with proper legal status, registered under the said sections. Since the legal status of NGO matters for donations, FYI all the charitable help to Seruds are completely exempted.
- Only selected amenities are included in tax deductions. For example, you made a standard donation, then you also paid school fees for a needy kid. It doesn’t come into the itemized donations.
- Instead, the donations made in material like school bag etc comes under Nonprofit tax exemption under 501(C)(3).
Not only in the USA but many countries including India provides all kinds of tax deductions. It’s true that good deeds never go unappreciated. What’s stopping you? Start your donation today to get a non-profit tax exemption. Your charity does make this world a better place.
All donations to Seruds are totally exempted from tax. We are enlisted on all platforms for online donations to ensure your tax deductions.
Donate via Global Giving Foundation USA: Click here
Donate via Give to Asia: Click here
Donate via Save the Children USA: Click here