Where can I get information on how my donation to a Tax Exempt Organization may be used?

Question

If I make a donation to a Tax Exempt Organization in Tennessee what websight could I use To get better information on how my financial/object donations will apply to my future tax I have to pay ??

Answer 1

The tax instructions for federal and TN return should be online and tell you. I wouldnt donate money to save on taxes. It doesnt save you that much. Donate because you want to help an organization out or you have stuff you dont need. Keep receipts and let your tax preparer figure it out.

Answer 2

As to how they'll be used, ask the organization.

As to how they'll affect your taxes - if you make a donation to an eligible organization and get a receipt, you can take the amount donated as a charitable deduction on that year's income tax return if you itemize. Your tax savings will be the amount of the donation times your tax bracket: if you donate $100 and are in a 15% bracket, your tax savings will be $15. If you donate something other than cash, there are special rules regarding the deduction amount.

Answer 3

To see how the charity spends its money, go to www.guidestar.org and register. It's free. There you can view the organization's Form 990's which show how much the organization took in each year and how they spent it, including the salaries of the top officers, etc. You can see how much goes into programs and how much is overhead. Good luck.

Jim Kirby, CPA