Before You Give: What Really Counts as Tax-Deductible This Season
As the year comes to a close, many of us take time to reflect on what matters most and support the causes that strengthen our community. Giving from the heart can also offer financial advantages. Understanding the basics helps you make the most of your generosity with confidence.
Gifts to IRS-recognized charitable organizations may qualify for deductions
To receive a federal income tax deduction, most contributions must be made to a public charity recognized under Section 501(c)(3) of the Internal Revenue Code. These organizations serve charitable, educational, religious, scientific, or similar public-benefit purposes.
If you itemize your deductions, gifts to qualifying charitable organizations may reduce your taxable income while helping local programs thrive.
Some nonprofits are not eligible for tax-deductible gifts
Many civic groups, social welfare organizations, and neighborhood associations play meaningful roles in our region. They help build strong communities and foster local pride. However, many of these organizations are structured differently under IRS rules, often as 501(c)(4) or 501(c)(6) organizations. Contributions to them typically are not tax-deductible.
This does not diminish their value. It simply means they are organized under different tax classifications.
Nonprofit and tax-exempt are not the same thing
People often use the terms nonprofit and tax-exempt interchangeably, but they are not identical. Nonprofit status is granted at the state level. Tax-exempt status, including the ability to receive tax-deductible charitable gifts, requires separate approval from the IRS.
Only some tax-exempt organizations are classified as charitable organizations eligible to receive deductible contributions. Knowing the difference helps ensure your giving aligns with your goals.
You do not have to navigate these rules alone
The rules can feel technical, especially during a busy year-end season. Our team works with donors and local organizations every day and can help you confirm which contributions qualify for deductions. We are also here to support you in thinking strategically about your broader charitable goals.
The heart of giving matters most
Tax benefits are a meaningful consideration, but they are only one piece of the picture. The true value of your generosity is the difference it makes for people, programs, and places in our community.
Every gift has the power to strengthen local organizations and build a brighter future close to home.
If you are planning year-end gifts, we invite you to connect with us. We are here to help you give confidently and in a way that reflects your values.
This article provides general educational information. Please consult your tax advisor for guidance specific to your situation.