Doing well by doing good: charity and taxes in North Alabama
The winter holiday season has always been a time for communities and individuals to come together and aid those most in need.
Not only is charitable giving a benefit in and of itself, but charitable donations to exempt organizations can also lower the taxable income for your household.
Federal tax deductions are generally capped at 60% of adjusted gross income prior to deductions, but some organizations, such as veterans’ groups, have that capped at 30% AGI.
Use IRS tax deductibility codes to find the specific caps for the type of charity to which you wish to donate.
It is important for filers to keep all receipts, bank statements, or other documentation to prove that they made the charitable contributions claimed on tax statements.
There are special rules for donated non-cash assets, such vehicles, furniture, or clothing, so make sure to obtain the specific forms for non-cash property donations.
The charitable organizations best to donate to are recognized 501(c)(3) organizations.
These include, but are not limited to:
– Churches, temples, mosques, or other religious organizations
– Non-Profit organizations dedicated to medical research or health care
– Non-Profit educational organizations or institutions
– Veterans’ Organizations
– Volunteer Fire Departments
While there are many well-known charitable organizations operating on the national scale, there are also many local organizations doing good work right here in North Alabama.
One such charitable organization is the North Alabama Coalition for the Homeless (NACH).
Aside from cash donations, NACH is currently in the midst of a cold weather gear drive, collecting new or gently-used coats, blankets, gloves, hats, and sleeping bags, for people in need during the cold weather months.
The NACH Cold Weather Gear Drive is ongoing until February, and drop-off sites are listed on their website, nachcares.org. NACH requests that those bringing gear to donate please call ahead to confirm office hours beforehand.
The Food Bank of North Alabama has been in operation since 1984, and currently supplies 13 million pounds of food per year, distributed to 220 shelters, food pantries, and children’s programs across North Alabama, as well as funding initiatives to encourage food production entrepreneurship and healthy food access.
The Food Bank of North Alabama is not only fully tax deductible, but has a convenient online system for monetary donations to customize the amount donated, as well as offering plans for recurrent donations if one wishes to donate on a repeat basis over monthly, quarterly, or annual increments.
The North Alabama Medical Reserve Corps (NAMRC) is a non-profit organization dedicated to recruiting and training both medical and non-medical volunteers to supplement community emergency or disaster response capability.
For those looking to lend a helping hand to our fuzzy friends, the Greater Huntsville Humane Society is a no-kill animal shelter, which also runs a pet food bank and the Gayle Henley Memorial Pet Wellness Clinic.
Arts Huntsville adds a splash of color to the city, operating as a non-profit organization to provide art education, provide artistic community enrichment, and generally promote the arts within the city of Huntsville.
These are just a few of the many worthy tax-deductible organizations based in North Alabama. There are still many more, as well as organizations that operate on a state, national, or international scale.
Donating to organizations like these not only reduces your taxable income at the state and federal levels but, more importantly, helps create a kinder, healthier, and more beautiful North Alabama.
What better way to make your money work than by putting it toward meaningful change?
