The Cleveland BBB’s Charity Review Program contains information on all local organizations about which donors have requested information. All organizations listed are non-profit and tax exempt, which means that the organization is not required to pay federal income tax under most circumstances. However, tax exempt does not mean tax deductible as a charitable contribution. The following is a list of tax codes that apply to non-profit organizations:
501(c)(3) This code applies to: religious, educational, scientific, literary, human service or otherwise concerned with the common good. Donations to these organizations are tax deductible.
501(c)(4) This code applies to: civic leagues, social welfare organizations and local associations of employees that are proponents of community welfare. Generally, they are considered lobbying groups. Donations to these groups are not tax deductible as a charitable contribution.
501(c)(5) This code applies to labor organizations. Donations to these groups are generally not tax deductible as a charitable contibution.
501(c)(6) This code applies to: business leagues, chambers of commerce and the like whose activities are intended to improve business conditions. Donations to these groups are not tax deductible as a charitable contribution.
501(c)(8) This code applies to associations and beneficiary societies. Donations to these groups are only tax deductible if the contribution is made exclusively for charitable purposes.
501(c)(10) This code applies to domestic fraternal societies. Donations to these groups are only tax deductible if the contribution is made exclusively for charitable purposes.
501(c)(19) These organizations are veterans groups. Donations to these groups are tax deductible.
So, if you want your contribution to be tax deductible, make sure the organization you are donating to is one that is registered under the appropriate tax code. Most appeals will indicate that the organization is eligible to receive gifts deductible as charitable donations. To be sure, either ask the charity for a copy of its tax-exempt status determination letter or review the list of organizations in IRS Publication 78, which is a listing of all organizations that have applied for tax-exempt status. The IRS also has available a number of publications that will help you to determine exactly what contributions made to organizations are deductible and what tax status the organization has currently filed for. This information is accessible on their web site at www.irs.ustreas.gov/charities/index.html or you may call them to request any of their publications pertaining to donor information at 1-800-829-1040.