Qualified Charities

Question 1

How can tax payers determine if a charity is a “Qualified Charity” for purposes of taking a tax deduction.

Answer 1

They can look up the charity using the IRS “Tax Exempt Organization Search” tool.

Question 2

Which of following characteristics disqualifies a non-profit organization from being a “Qualified Charity”

1. Consists of individual person or persons (which essentially renders the donation a gift)
2. Consists of an organization engaged in lobbying
3. Supports an individual candidate (e.g. a Political Action Committee)
4. Any organization that operates for a profit.

Answer 2

Any of the above.

Question 3

Which of the following types of non-profit organizations are generally deemed to be “30% organizations” subject to the 30% of AGI limitation on giving?

1. Veterans groups
2. Fraternal organizations
3. Certain non-operating private foundations

Answer 3

All of the above