• Home
  • About Us
  • Authors
  • Submit News
  • Contact Us
  • Privacy Policy
  • Sitemap
The Hack Post
  • Hacking News
    • Cyber Crime
  • Cyber Security
  • Technology
    • Internet
  • Entertainment
    • Gaming
  • Business
  • Science / Health
No Result
View All Result
The Hack Post
No Result
View All Result

How to Get US Charitable Deductions for Donating to non-US Charities

Sofia Peterson by Sofia Peterson
June 27, 2019
How to Get US Charitable Deductions for Donating to non-US Charities
Share on FacebookShare on Twitter

Every year, Americans donate a considerable amount of funds to non-profit organizations that thrive to work for the betterment of the people and society. In the year 2017, the total funds donated within the US were estimated to be $410 billion, which is impressive. The charities made to non-profit organizations helped in the betterment of individuals and societies that are in dire need.

Despite such efforts in terms of donation, some Americans feel that restrictions on donating to non-US charities restrict their freedom to freely donate. In fact, considering the charities made in 2017 by US residents, only 4.4 percent accounts for non-US donations. No doubt the major reason for such low contributions to non-US charities is that a US resident must donate to a US charity or else the charitable deduction is not available. Only the non-US charities that have a US presence which qualifies under the 501(3)(c) status can raise funds in the USA while offering tax deductions to the US donors.

Non-US organizations can get the status of 501(3)(c) from the IRS, but the process is complex and time-consuming. Moreover, there are certain conditions that an international charity has to meet in order to gain the status. We discussed this topic with a US tax adviser based outside the US, Matthew Ledvina, on the particulars of applying for 501(3)(c) status. Many non-US charities would like to access the US charitable donations of US donors, and this is the best possibility of doing so.

International Donations through US Non-profit Organizations

It is possible for US individuals and US organizations to make donations to non-US charities that are not registered to the US, but it is extremely rare. Usually, individuals donate only to charitable organizations that are eligible for tax dedications. As a solution to donating to a non-US charity directly, donors can givefunds to US non-profit organizations that work on a global level. The biggest advantage of doing so is that if the non-profit organization has the 501(3)(c) status, then the US tax deduction will be applicable and US donors will get a charitable tax deductions on their contributions.

It is quite important to address that the recent changes in the tax laws have made it difficult for US individuals to give charities. With the revised tax laws introduced in 2018, the standard tax deduction is higher than what it was before. As a result, tax deductions have become unreachable for people having average incomes.

Donations through Charitable Gift Accounts

Another possible way for making overseas donations and get tax deductions is through donor-advised funds. For funding on-US charitable organizations, the donor needs to set up a charitable gift account, which can be done through a national charitable fund. One important thing to keep in mind is that a donor-advised fund is an ideal option for donors who can make donations of at least $5,000.

Apart from offering immediate tax deductions, it is also possible to invest a large sum of money in the gift account that can be disbursed to charities at regular intervals. The organization that holds the investments also provide advice to the donors and recommends charities based on the area of their work such as healthcare, human development, environment, etc. Moreover, donor advised features allows donors to make contributions in the form of cash or securities.

The yearly donations made by the Americans are commendable and is increasing year by year. However, when it comes to international causes, the contributions are not that much. One of the major reasons for such mismatch is the lack of in on-US charitable organizations that are eligible for tax exemptions. However, by making donations through US charities that work internationally or charitable gift accounts, it is possible for donors to get tax deductions.

Follow Matthew Ledvina on Vimeo and YouTube for more video updates.

Sofia Peterson

Sofia Peterson

Sofia is a contributor at The Hack Post who loves to write about Technology. She also enjoys reading books and swims during her free time.

Next Post
The Role of API Integration in Modern Enterprises

The Role of API Integration in Modern Enterprises

Latest Articles

The Premier Choice for Cesspool Service near Ronkonkoma, NY
Business

The Premier Choice for Cesspool Service near Ronkonkoma, NY

May 26, 2023
A-1 Sewer & Drain
Business

A-1 Sewer and Drain

May 26, 2023
What is Content at Scale and How Does it Help Boost Your Content?
news

What is Content at Scale and How Does it Help Boost Your Content?

May 26, 2023
The Evolution of Payment Systems in the Cryptocurrency Landscape
Business

The Evolution of Payment Systems in the Cryptocurrency Landscape

May 25, 2023
Reasons Small Business Loans get rejected
news

Reasons Small Business Loans get Rejected

May 16, 2023
A Complete Guide on Mobile App Wrapping
Technology

A Complete Guide on Mobile App Wrapping

May 16, 2023
Best Roofing Company in Indianapolis
news

Best Roofing Company in Indianapolis

May 16, 2023
Sealants for Industrial Processes Introducing CJM Centritec Non Contact Seals and CinchSeal Rotary Shaft Seals
news

Sealants for Industrial Processes: Introducing CJM Centritec Non Contact Seals and CinchSeal Rotary Shaft Seals

May 15, 2023
Building Custom Generative AI Models with TensorFlow
Technology

Building Custom Generative AI Models with TensorFlow

May 13, 2023
Secure Your Gaming Experience Top Tips for Safer Online Play
Entertainment

Secure Your Gaming Experience: Top Tips for Safer Online Play

May 11, 2023
windows in europe Everything You Need to Know
news

Windows in Europe: Everything You Need to Know

May 4, 2023
4 Advantages You Can Get Using WordPress Alternatives
Technology

4 Advantages You Can Get Using WordPress Alternatives

April 29, 2023
  • Home
  • About Us
  • Authors
  • Submit News
  • Contact Us
  • Privacy Policy
  • Sitemap

The Hack Post © 2019

No Result
View All Result
  • Hacking News
    • Cyber Crime
  • Cyber Security
  • Technology
    • Internet
  • Entertainment
    • Gaming
  • Business
  • Science / Health

The Hack Post © 2019