Making a charitable contribution to a non-profit organization is a great way to give back to your community and help those in need. But did you know that it can also provide you with some tax benefits? That's right - when you donate to a 501(c) organization, your gift is considered a charitable contribution and can be deducted from your federal income tax return. In Central Texas, the process for claiming this deduction is relatively straightforward. To begin, you'll need to file Form AP-205, Texas Exemption Request for Charitable Organizations (PDF), with the Comptroller's office. This form will provide the IRS with the necessary information to verify that your donation is eligible for the deduction.
You can find this form on the Comptroller's website or by searching for it on the IRS website. Once you've filed the form, you'll need to provide some additional information about the non-profit organization you're donating to. The IRS Business Master File (BMF) contains key data points about exempt organizations, such as their certificate of incorporation and financial score. To access this information, simply enter the name of the organization or its EIN (Employer Identification Number) into the “Search Term” field. For example, if you're donating to the Humane Society of Central Texas, you can enter their EIN (74235512) into the search field and view their financial score of 26%. This score may not be representative of their current operations, so it's important to do your research before making a donation. By taking advantage of these tax benefits, you can make a difference in your community while also reducing your tax burden.
So if you're considering donating to a non-profit organization in Central Texas, make sure to take full advantage of these tax benefits!.