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3 questions
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  • Q1
    What is a charity?
    Any organization that has a primary goal of advancing some public good.
    A non-profit organization given tax-exempt status.
    Any non-profit that can show they meaningfully contribute to society.
  • Q2
    How does donating to a qualified charity help you financially?
    The donation does not actually benefit you financially at all - you spent money and got nothing for it.
    The donation, up to a certain amount, can be used as a deduction on taxes, thereby lowering your tax liability for the year.
    The donation is used to benefit a cause that you are passionate about, and is therefore a good use of your money.
  • Q3
    Adam donates $10,000 to his qualified charity in the current tax year. Bill donates his new car to the same charity. The current market value of the car is $10,000. Who can claim a larger deduction?
    They can both claim the same deduction amount, provided Bill can prove his car was worth $10,000.
    Bill can claim a larger amount because property is more immediately useful to charitable organizations than cash.
    Adam can claim a larger amount because it's difficult to assess the actual value of property.

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