What type of donations to a nonprofit organization are tax-deductible?
In Washington, tax-deductible donations to a nonprofit organization are those that are made to a registered charitable organization or a qualified tax-exempt organization. This includes any donations of money, goods, or services. When donating money, the gift must be made directly to the nonprofit. Donations of goods can include clothing, furniture, or other tangible items. These donations must be in new or excellent condition and must have a fair market value. Donations of services, such as volunteer work, are also considered tax-deductible. In addition, a donor can also receive a tax-deduction for a vehicle donation, provided that it is accepted by the nonprofit organization. The IRS requires donors to get written documentation when donating any type of vehicle, including cars, boats, and planes. The documentation must include the name and Tax ID number of the charitable organization, the date of the donation, and a statement indicating the vehicle was accepted by the charity. Finally, donations to a nonprofit organization may also include "in-kind" donations, such as stocks or real estate. These gifts must be properly appraised by an authorized appraiser, and the donor must obtain written proof of the appraisal. The donor must then present the appraisal to the charity in order for the donation to be tax-deductible.
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