Tax Benefits

Providing a tax efficient way to make a difference.
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Please note: Those considering donations should be aware that the Foundation’s 501c(3) status is pending. While we do not anticipate any abnormal delays in that approval, tax deductibility could be affected if delays are encountered.

Tax deductible donations are contributions of money or goods to a tax-exempt organization, such as the VIP Foundation. To claim tax deductible donations on a return, taxes must be itemized by filing a Schedule A or IRS Form 1040 or 1040-SR.

In general, you can deduct up to 60% of your adjusted gross income via charitable donations (100% if the gifts are in cash), but you may be limited to 20%, 30% or 50% depending on the type of contribution and the organization (contributions to certain private foundations, veterans organizations, fraternal societies, and cemetery organizations come with a lower limit, for instance). IRS Publication 526 has the details.

  • The limit applies to all donations you make throughout the year, no matter how many organizations you donate to.
  • Contributions that exceed the limit can often be deducted on your tax returns over the next five years — or until they’re gone — through a process called a carryover.

Keep track of tax-deductible donations, no matter the amount. If you made a monetary contribution, qualifying documentation includes a bank statement, a credit card statement, and a receipt from the charity (including date, amount, and name of the organization) or a cancelled check. If you made a contribution as an automatic deduction from your paycheck through your employer, keep copies of your W-2 or pay stubs showing the amount and date of your donation.