Ask the Expert
Your Taxes
Charitable Donations
& Tax Deductions
Ryan Dodson has a
Masters in Accounting
from North Carolina
State University. He
worked in public
accounting with
Deloitte and Arthur
Andersen. He and his
wife Tiffany own and
operate Liberty Tax
Service.
405 East Dixie Drive
Asheboro, NC 27203
(336) 629-4700
22
People make charitable donations for
various reasons. Some are motivated by a
desire to give back to their communities,
while others may be inspired by a
particular cause whether that cause is
based down the street or across the globe.
Network for Good, an organization that
helps nonprofits connect with prospective
donors, says 89 percent of American
households give to charity. Gifts average
3.2% of household income, or roughly
$1,620 annually, and oftentimes such
donations are tax deductible. The Internal
Revenue Service is the organization tasked
with overseeing tax-related issues. Indepth
information regarding applicable tax
deductions can be found on www.irs.gov.
Individuals should consult with a qualified
accountant should they have any
questions regarding charitable donations
and deductions. In addition, there are
some guidelines for donors to follow
Asheboro Magazine, Issue 51
when making donations and claiming tax
deductions:
• Recognize that only charitable
contributions made in the calendar
year are potentially eligible to be
claimed as deductions. For example,
only those donations made between
January 1, 2014 and December 31,
2014 can be claimed on your 2014
tax returns (filed in 2015). Therefore,
if you’re hoping to deduct donations
as soon as possible, do your giving
before the end of the calendar year.
• he IRS requires donations be
T
given to a qualified organization for
donors to earn a deduction.You
cannot deduct contributions made
to specific individuals or political
candidates and organizations. In
general, trusts, foundations, war
veterans’ organizations, fraternal