Solved

Can you donate to your own charity?

Forum|Forum|7 years ago
June 1, 2019
3 replies
0 views

My husband and I founded a 501(c)(3) Charity in 2015, but had been doing the charitable works for 5 years prior. It is a mobile soup kitchen, so we had purchased and have been using the stoves, tents, water heaters and sinks, etc before we decided to do this "officially". Can we donate the equipment we own to the charity now and take the deduction? If so, do we take the amount we paid for the equipment? Or how much it would be worth in today's market if we were to sell it?

TurboTax Self Employed Online

Best answer by AmyT

Yes, you are able to donate to a charity that you founded.

You can make a tax-deductible donation to any 501(c)(3) charity, regardless of your affilitation with it.

You can claim the fairm market value (FMV) of the equipment that you are donating, which would be equal to the price you could sell it for in today's market.

Do make sure that the charitable organization gives you a signed receipt for the donation that indicates what was donated, the value of the donation, and states that no goods or services were received in exchange for the donation.

Note: If the organization is not already doing so, it should make it a practice to provide all donors with a receipt containing the information listed above.

A

AmyTAnswer

Employee

Yes, you are able to donate to a charity that you founded.

You can make a tax-deductible donation to any 501(c)(3) charity, regardless of your affilitation with it.

You can claim the fairm market value (FMV) of the equipment that you are donating, which would be equal to the price you could sell it for in today's market.

Do make sure that the charitable organization gives you a signed receipt for the donation that indicates what was donated, the value of the donation, and states that no goods or services were received in exchange for the donation.

Note: If the organization is not already doing so, it should make it a practice to provide all donors with a receipt containing the information listed above.

K

kellig

what if I donate money to my non profit ? and it is not equipment, just cash. How much would be exempt from my own taxes

J

JamesG1

Assuming that this is a legitimate not-for-profit charity that reports annually to the IRS on for 990, there are no restrictions other than what you would encounter with another charitable organization.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

A

Anastasia1975

I actually have this same question. I do have a legitimate 501c3 animal welfare organization, however we are new and do not have a donor base yet, so all treatment and care (food, medical, etc.,) for the animals has been out of my own pocket. One question I can’t seem to find an answer to is whether I need a letter from my own not profit as I would give any other donor?
Also, are credit card payments made to the nonprofit (vet bills for example) deductible or just what has been paid toward the credit card for that year?

thanks so much!!!

B

BrittanyS

You can make a tax-deductible donation to any 501(c)(3) charity, regardless of whether you established the 501(c)(3). You will want to maintain accurate records for the organization as well as yourself and treat your donations as you would any other donor. The organization will need to issue you a donor receipt like any other donor for tax purposes.

The deduction for business expenses purchased with a credit card is taken in the year of the purchase.

@Anastasia1975

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

H

Highgood4all

How much money will I get back if I donated 16,000 to my own charity last year, but only made $9,000/yr salary?

X

xmasbaby0

Employee

@Highgood4all Please explain "my own charity" and how you donated more money than the amount of income you earned. And how much tax was withheld from your income?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**