A Complete Guide to Tax-Deductible Donations for 2025
Disclaimer: The PGM FOUNDATION does not provide legal or tax advice. Please consult with a qualified financial advisor regarding your specific situation.
Giving to a cause you care about is a reward in itself, but it can also provide significant financial benefits during tax season. As a registered 501(c)(3) nonprofit organization, donations made to the PGM FOUNDATION are generally tax-deductible.
To help you navigate this process, we have compiled a guide on how to maximize your impact and your potential tax savings.
What Qualifies as a Tax-Deductible Donation?
To claim a deduction, you must itemize your deductions on your tax return rather than taking the standard deduction. Qualifying donations include:
Cash Contributions: Gifts made via check, credit card, or payroll deduction.
Goods and Property: Clothing, household items, or vehicles (valued at fair market price).
Stocks and Securities: Appreciated stocks can often be donated, potentially allowing you to avoid capital gains tax.
The "Receipt Rule": Documentation You Need
The IRS has specific requirements for substantiating your gifts.
Donations under $250: A bank record (cancelled check or statement) usually suffices.
Donations of $250 or more: You must have a written acknowledgment (receipt) from the nonprofit.
Note: At the PGM FOUNDATION, we automatically send an annual giving summary to all donors who contribute over $250 by January 31st of the following year.
Important Deadlines
To claim a deduction for the current tax year, your donation must be processed by December 31st.
Checks: Must be mailed/postmarked by Dec 31.
Credit Cards: Must be charged by midnight on Dec 31.
Why Smart Giving Matters
Strategic giving allows you to potentially give more to the cause you love without costing you more. By leveraging tax deductions, you lower your taxable income, effectively subsidizing a portion of your charitable contribution.
Summary Checklist for Donors:
[ ] Verify the organization has 501(c)(3) status (We do!).
[ ] Keep records of all donations.
[ ] Decide if you will itemize deductions.
[ ] Make your contribution before the Dec 31st deadline.
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