Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Philanthropy and other Charity topics.
As with anything, there is more to charitable giving and tax deductions than meets the eye. Find out how much of your donation is really tax deductible. Be aware that if you receive a something in exchange for your gift (such as a book, a dinner, or some other 'prize') the amount of your tax deduction is reduced by the fair market value of the premium. For example, if you pay $600 for 2 tickets to the Superbowl (assume face value of $200 each) at a charity auction, you can only receive a tax deduction equal to $200.
*You can always turn down the incentive item if you wish to claim a deduction for the full amount of your gift - ask the receiving organization for more details.
|Sheri Ann Richerson|