Charitable gifts can be less taxing
At a time of year when everyone's thoughts turn to giving presents to family and friends, it's also a good time to consider giving to charity.
But unlike forgetful relatives and slacker friends, donations to charities are the gifts that give back.
"Right now, at the year's end, folks are always looking for that tax deduction," said David Crews, a certified public accountant in Martinez. "Giving money to charity is certainly one way of getting a deduction on your personal taxes"
Timing is essential. Crews said that those looking to see the benefits of their tax-deductible donations next year must make the donation before Jan. 1.
"If you donate now, then you will be compensated for that donation next April when taxes are due," said Crews. "If you wait until January, then that's a whole new year and you won't realize the benefits of your donation until April 2004. So, by putting it off for a few days, you could end up not seeing the benefits for nearly a year and a half."
It's important to remember that when giving to a charity it's to benefit the charity, not to give you a huge tax break. Donors will be compensated for their contribution by the government, but never for the full amount.
"Take the dollar amount of your donation and multiply it by the tax bracket you're in and that will give you the dollar amount of savings on your taxes," said Crews. "If you donate $100 and your in the 15-percent tax bracket then your federal taxes are reduced by $15."
Crews also recommends that you always get a receipt on larger donations.
"If you give more than $250 at one time then you need a receipt and attach it to your taxes when you mail them in," he said. "Anything less than that and the IRS (Internal Revenue Service) will be satisfied with a check statement. Anything more than $250 and a check stub isn't going to be good enough if the IRS decides to audit."
If a donation consists of something other than money, such as clothes or furniture, then a receipt is also necessary for that as well.
"We will give a voucher to someone making a donation that they can include with their taxes, but they have to estimate the value of the donation themselves," said Gordon Renshaw, director of community relations for Goodwill Industries. Goodwill accepts monetary donations, clothes, furniture, appliances and many other non-cash goods.
"We do provide guides to our customers to help them in determining the worth of their merchandise," said Renshaw. "These guides are pretty universal in Georgia and South Carolina and it helps the customer to make an estimate based on what they are donating."
Though it may be tempting to overestimate the worth of a donated item, Crews warns against that.
"The last thing you want to do is raise the eyebrows of the IRS with some outrageous estimate," said Crews. "The fact is, they have more money than you and they can ruin your life."
For even larger donations, like property or a vehicle, it may be necessary to get an appraisal and attach it to your return. The IRS will not compensate the donor for the cost of the appraisal.
Another important factor to consider is the organization to which you plan to make a donation.
"If we're talking about charities then we're talking about non-profit groups with an IRS classification of 501(c)(3)," said Crews, who sits on the board of such non-profit organizations as the Greater Augusta Arts Council and Walton Options for Independent Living.
According to the official IRS Web site, www.irs.gov, the government recognizes donations to non-profit groups that are religious, educational, scientific, charitable, literary in purpose, or that work to prevent cruelty to children or animals. Donations to non-profit organizations not recognized by the IRS include political parties, labor unions, sports clubs and so on.
"I would encourage anyone to research the organization they intend to contribute to," said Renshaw. "Not only check to see if your donation can be written-off, but also look to see how that organization spends that donation.
"I recently read where a couple of non-profit groups are in trouble because up to 80 percent of the funds being donated to them were being used for administrative purposes. I've always taken great pride that 90 percent of what is donated to Goodwill is being put toward our mission of helping people in the community learn marketable work skills."
Regardless of where or how much you donate, always be sure to keep a clear record of those donations. To deduct a charitable contribution, the IRS requires you to file Form 1040 and to itemize deductions on Schedule A.
"That is very important to make sure your paperwork is in order and to itemize each deduction," said Crews. "Non-itemized donations are a wonderful civic duty, but it's not helping you with your taxes."
For charity:
The following is list of some of the charitable organizations in Columbia County:
Columbia County Cares
6345 Columbia Road
Appling, GA 30802
541-2834
Accepts monetary donations, toys, food, furniture, clothes
Columbia County Children's Resource Center
6347 Columbia Road
Appling, GA 30802
541-2849
Accepts monetary donations, toys, clothes
United We Care
410 Creekside Drive
Grovetown, GA 30813
854-8852
Accepts money, food, clothes, small furniture, appliances, dishes, toys.
MIR Children's Foundation
233 Woodland Drive
Martinez, GA 30907
650-1315
Accepts monetary donations
Big Changes Start Small Inc. (It's Spooky to be Hungry)
4248 Riverside Drive
Evans, GA 30809
863-5863
Accepts monetary donations, food and toiletries
Columbia County Humane Society
P.O. Box 204771
Martinez, GA 30917
860-5020
Accepts monetary donations, pet food and pet supplies
Friends of Columbia County Libraries
326 North Belair Road
Evans, GA 30809
863-1946
Accepts monetary donations and books
Columbia County Foundation for Children
669 North Belair Road
Evans, GA 30809
863-4888
Accepts monetary donations and children's clothing
Goodwill Industries Inc.
As of Jan. 16
4074 Washington Road
Martinez, GA 30917
790-3599
Accepts monetary donations, clothes, appliances, furniture and more
Harlem Neighborhood Development Authority
P.O. Box 1001
Harlem, GA 30814
556-0655
Accepts monetary donations
Laurel and Hardy Museum
P.O. Box 99
Harlem, GA 30814
556-0401
Accepts monetary and Oliver Hardy memorabilia
Grovetown Museum
P.O. Box 120
Grovetown, GA 30813
863-4576
Accepts monetary donations, artifacts and memorabilia
Grovetown Senior Center
P.O. Box 120
Grovetown, GA 30813
210-8699
Accepts monetary donations, cleaning supplies and household items
Columbia County Arts Inc.
P.O. Box 2025
Evans, GA 30809
868-5792
Accepts monetary donations
Columbia County Historical Society
P.O. Box 203
Appling, GA 30802
541-1683
Accepts monetary donations, artifacts and genealogies