Charitable Giving & Tax Savings
Spreading Pawsitivity
A super list of deductions for animal lovers and charitable souls
Whoever we are, irrespective of age, socio-economic background, or geographic location, helping others makes us happy. Our “feel-good’ barometer can be depended on to go off the scale if we help animals in need and organizations that support them. But in a year of political unrest and economic struggles we, humans, also need to elevate our fauna counterparts, not just our mood. Because, when we are struggling, animals always have it worse.
You might already be an angel for someone clawed, hoofed, winged, or scaled. Maybe you are just thinking about it. Whatever the case, it will be my privilege to save you some good old dollars and perhaps encourage or provide financial room for a rescue mission you have been putting off. For those of you who might get offended by my rather businesslike approach to philanthropy, please bear with me. Our dwellings are packed, hearts call for altruistic gestures, and 2020 tax returns need deductions.
“Long-Distance” Charity
If you need a holiday gift idea, consider supporting a local sanctuary, animal shelter, or national organization. Cash donation to a qualified organization is a tax deduction whether you buy it for your friends, relatives, or to cheer your kind self. These donations are a lifeline for foster communities and generally fund the costliest items such as medical treatments.
Please maintain a record of the amounts contributed — a bank/credit card statement will suffice. You can search for eligible organizations on the IRS website. It might be quicker (and easier) to check websites directly or call to verify. You can also simply google “qualified charitable organization near me.” So yeh, you can be goody two shoes and save on taxes without leaving your house.
Takeaway: donations of funds to qualified organizations in the U.S., Canada, and Mexico are deductible by whoever purchased it (donor). Keep “thank you” emails/letters from donee organizations acknowledging your gifts or credit card bills.
Stuff Matters
With the holiday season coming up, many of us will search thru the clutter accumulated in the long months of quarantine and the dark corners of impulse purchases. Blankets, towels, grooming and medical supplies, accessories, toys (even self-made), and whatever else you hastily acquired — donate! Everything has a fair market value. As you likely already guessed, it is deductible.
Wondering if you should make an effort? Besides thinking of karma and good vibes, you can take a quick look at Goodwill Value Guide. It lists commonly donated items and corresponding values along with a neat calculator that translates the original price into a donation.
Takeaway: Almost any item in good condition can be donated and is deductible. If your non-cash donations will exceed $500 in value, detailed itemization is required by the IRS (Form 8283). Provide a list of everything you donated and ask the recipient organization to acknowledge your gift via email.
Fosters Parents
The world is on lockdown. Again. The spirit of this holiday season might be somewhat dark for many. Sadness and loneliness are not strictly human prerogatives. If you love animals and able to care for one (or more), I challenge you to complete a foster volunteer course at a local shelter or adoption agency. If you cannot be with your human loved ones this Christmas, consider rehabilitating a pup in need or showing a feline loner that life can be warm, beautiful, and full of things to scratch. If you are already a volunteer or employee of a rescue center, I and the rest of this planet salute you! Your hearts are larger than life, and I bet you smile often.
Here are the details of what your sainthood renderers in tax deductions:
- Medical bills. If you are covering veterinary fees, medications, or have to modify your home to offer special accommodations, deduct! Anything over $250 needs validation from the charity you affiliate with (email will suffice).
- Pet supplies, including food. It could be leashes, feeding bowls, toys, blankets, grooming supplies, treats, etc. If you have your own pets, deduct only a portion of expenses that relate to the foster animal(s). Typically, a percentage based on the number of animals in the household is applied to all related purchases. Example 1: if you have a kitty and foster another two, then 2/3s of all your feline related expenses are deductible.
- Travel expenses are subject to the general rules for unreimbursed volunteer expenses discussed below.
Takeaway: Look thru your monthly expenses for pet-related food, supplies, medical bills, and other items that you might have missed in the past.
Volunteers of Anything and Everything
The world needs us, the causes are infinite, and you probably already know what moves You. Join the ranks of like-minded souls to meet people who care about what is important to you. It is a great feeling to belong and to share a mission. We are not talking about Star Track adventure here, but it is pretty close, and it is fun. Don’t overstretch. Some projects are more demanding than others. It is easy to get overwhelmed. Naturally, please remember to note your expenses.
- Unreimbursed car fuel costs, parking fees, and tolls. You can track these purchases via credit card bills. Gas expenses have another option — mileage. Most likely, you travel to a limited number of locations — Google Maps will do the trick on mileage count. Use the standard rate of 0.14 cents a mile (2020, IRC 170(I)) to figure your contribution. Keep a mileage log via an app., excel, or fancy notebook. Repairs, registration fees, and car insurance are not deductible. But if you are driving a great deal while volunteering, the gas costs do add up, don’t pass on it.
- If you are purchasing supplies required for activities set out by the organization, it is a deduction as well. Again, for any items that exceed $250, you need acknowledgment from the organization you are affiliated with.
- Internet and Cell-Phone bills. If you consistently volunteer from home and your time contributions are significant, you may be able to deduct a portion of the internet and cell-phone bills. A few hours here and there will not qualify. IRS does not define a specific time or period of engagement that is required. Your time contribution must be ample and consistent.
- Example 2: you support local shelter fundraising and social media initiatives; your main duties are remote and performed from home — via phone or online. You consistently volunteer roughly 15 hours each week for a period of 6 months. The portion of cell-phone and internet bills for these 6 months can be allocated to the charitable deduction.
- Naturally, if your charitable work takes you to the air, the unreimbursed costs of taxi, airfare, lodging, and some meals are deductible as well.
Your time is priceless and cannot be deducted, c’est la vie. But remember, you are a superstar, and the world is certainly a better place because you are part of it!
Takeaway: deduct unreimbursed expenses related to the charitable activity; obtain written confirmation from the charity for all items that cost more than $250. Generally, it is recommended to submit a comprehensive statement of all expenses incurred and get an affiliated charity to acknowledge your contribution.
My family adopted two feral working cats this year, and while it was a super stressful time for our dog (well-adjusted, but jealous rescue), they are learning to co-exist peacefully. Coupled with my experiences at the Anticruelty society foster program, I can say that expenses for animal parents add up quickly, so I implore you to take note of your spending and giving. Like a good credit card point system, it will pay you back handsomely.
Whether it is a donation season or your life mission, animal welfare is a worthy cause that can offer a chance to make a friend or to save a life, lift you up, declutter your home and expand your “giving” budget for next year.
Let’s spread some joy, be merry, and be kind. Happy holiday giving to all!
