Donation Warning

Want to help Israeli and Gazan victims of the violent Mideast conflict…

And get a tax write-off if you itemize? Give only to a 501(c)(3) charity recognized by IRS. Use IRS’s online Tax Exempt Organization Search tool to verify whether a charity you are pondering donating to is tax-exempt and whether it’s eligible to receive deductible contributions. Keep receipts and follow the recordkeeping rules. Donations you make to individuals aren’t deductible. The same rule applies for gifts made through personal fund-raising websites for one person or small group.

Watch out for art donation tax dodges, IRS warns.

Here’s a common scheme that keeps popping up: Promoters encourage people to buy art at a discounted price, wait for over a year, and then donate the piece to a museum or other charity and claim an inflated charitable contribution deduction. The promoter often arranges for the appraisal and will sometimes find the donee. IRS is investigating these ploys.