TAX BENEFITS OF GIVING

While we believe at California Waterfowl Association (CWA) that your primary motivation to donate to charity should be altruism, we also think you should know that great tax benefits exist for those who give.  

Here are some of the benefits you should know about:

• A gift to CWA may entitle you to a charitable contribution deduction against your income tax if you itemize deductions.  The actual cost of the donation is reduced by your tax savings.  For example, if you are in the 33% tax bracket, the actual cost of a $100 donation is only $67 ($100 less the $33 tax savings).  As your income tax bracket increases, the real cost of your charitable gift decreases, making contributions more attractive for those in higher brackets.

• A contribution to CWA is deductible in the year in which it is paid.  Putting the check in the mail to the charity constitutes payment in the eyes of the Internal Revenue Service (IRS).  A contribution made on a credit card is deductible in the year it is charged to your credit card, even if payment to the credit card company is made in a later year.

• Rules exist for non-cash donations.  If you contribute property owned for more than one year, the value of the deduction is normally equal to the property's fair market value.  You have an advantage when you contribute appreciated property because you get a deduction for the full fair market value of the property.  You are not taxed on any of the appreciation, so, in effect, you receive a deduction for an amount that you never reported as income.

Remember, it's always better to give than receive.  The glory of charitable donations is that you give and receive at the same time.

Ready to make a contribution, leave a legacy for future generations or simply have questions, please feel free to contact Colby Heaton at colby_heaton@calwaterfowl.org
or call (916) 648-1406.

The above is a brief summary of certain federal income tax laws for informational purposes only.  In order to ensure compliance with requirements as they apply to your specific contribution and circumstances for federal, state, and local taxes, we strongly encourage you to consult your personal tax advisor, accountant or qualified tax professional.