Tax-deductibility
A donation is tax-deductible when the IRS lets the donor subtract it from taxable income — generally true for gifts to 501(c)(3) public charities.
Deductibility depends on the recipient's IRS status and on the donor itemizing deductions. Gifts to public charities have the highest deduction limits; gifts to private foundations are more limited; gifts to individuals or most 501(c)(4) advocacy groups aren't deductible.
Always keep a receipt with the organization's EIN for gifts you intend to deduct.
Related terms
- 501(c)(3) — A 501(c)(3) is a U.S. tax-exempt organization operated for charitable, religious, educational, scientific or similar purposes, to which donations are generally tax-deductible.
- Public charity — A public charity is a 501(c)(3) that receives support from a broad base of donors and the public — the most common type of charitable organization.
- EIN — An EIN (Employer Identification Number) is the unique nine-digit number the IRS assigns to a nonprofit, formatted like 12-3456789 — its permanent tax ID.
You're reading the CharityIndex glossary
CharityIndex rates 1.9 million U.S. nonprofits A+ to F straight from their IRS filings — program efficiency, financial health, governance and transparency. Put this term to work: check any charity before you give, or search the full directory.