Tag: charitable donations

Amplify Austin

Amplify_UFCU_verticalJoin the first community wide giving festival through Amplify Austin. 

How It Works

Visit this website (AmplifyATX.org) during Amplify Austin Day, which starts at 7pm, March 4 and ends 7pm, March 5.

At that time, this website will be transformed into a giving site; you’ll be able to search by the name of the nonprofits you love or the causes you’re passionate about.

You will have a greater impact by giving through this website on Amplify Austin Day because our sponsors have created an incentive pool to enhance your donations, and prizes of $1,000 will be given hourly to the nonprofits that garner the most dollars or donors.

On Amplify Austin Day, we are giving back to the city we love. Join us!

 

Wikipedia vs Wikileaks

During tax prep time, a client was aghast that her husband had given money to Wikipedia since that was the organization that leaked confidential information.

These two organizations are not the same thing.  From Wikipedia:

WikiLeaks is not affiliated with Wikipedia or the Wikimedia Foundation.

WikiLeaks is an international self-described not-for-profit organisation that publishes submissions of private, secret, and classified media from anonymous news sources, news leaks, and whistleblowers.

I think that as often as we all use Wikipedia, we should support The Wikimedia Foundation.

Wikimedia Foundation Fundraises to Keep Wikipedia Going: Accounting Today.

What, me budget?

Yes, you.   We all should.  Some expressions:  failure to plan is planning to fail or without a goal, wherever you end up is your goal.

My favorite budget guidelines have always been Larry Burketts, Money Matters , financial planning guidebooks.  In the referenced tribute to Larry, his philosophy of money is reflected:

One of the central principles Larry taught is that we don’t really own things; we are simply stewards and managers of what God has entrusted to us.

There are many budget preparation guidelines, but I’ve always liked the ones provided by what is now Crown Financial Ministries.  Here is a link to Crown’s Suggested Percentage Guidelines for a Family of 4 (High Housing Cost Areas) (since I live in Austin!).  There are also guidelines for singles, single parent, couples, etc.

Important to note is that these budget guidelines start with gross income so that a tithe comes off of gross.  No funny business about giving on net or gross.  I’ve heard other financial planners say that wherever you give your money, if you can’t live on 90% of your income, you have a problem.

The next reduction is for taxes.  If you are an employee, you can use the amount withheld for taxes from your paycheck.  Be careful not to have too much income tax withheld.  It’s better to pay a $1 than to let Uncle keep your money for up to 16 months!  If you are self-employed, you can look at the total tax paid on your prior year return.  Taxpayers think that they are saving money, but in fact, saving a little money each month in a savings account generates more savings than the “income tax withheld” savings account.  The tendency is to spend that tax refund impulsively rather than putting it into savings for planned spending.

After the reductions for both giving and taxes, then you compute your budget percentages.  Your budget is based on your spendable income.

As you complete your budget, remember that many employees have additional reductions in their pay that need to be considered as you budget:  health insurance premiums, 401(K) contributions,  day care tuition, etc.

I started a 30-Day Diary to really check in with how I spend money on a daily basis.  My dad (the first Newby CPA) used to keep a notebook in which he recorded all cash expenditures for the day.  What discipline!  Join me in the goal of tracking out of pocket expenditures (so to speak!) for 30 days.  Let me know how you do.

 

 

 

 

 

 

Donations of Unreimbursed Expenses

May I deduct as charitable contributions expenses that I incur on behalf of a charitable organization that are not reimbursed?

Per IRS Publication 1771:

If a donor makes a single contribution of $250 or more in the form of unreimbursed expenses, e.g., out-of-pocket transportation expenses incurred in order to perform donated services for an organization, then the donor must obtain a written acknowledgment from the organization containing:

    a description of the services provided by the donor

    a statement of whether or not the organization provided goods or services in return for the contribution

    a description and good faith estimate of the value of goods or services, if any, that an organization provided in return for the contribution

    a statement that goods or services, if any, that an organization provided in return for the contribution consisted entirely of intangible religious benefits (described earlier in this publication), if that was the case.

In addition, a donor must maintain adequate records of the unreimbursed expenses. See Publication 526, Charitable Contributions, for a description of records that will substantiate a donor’s contribution deductions.
Example of an unreimbursed expense: A chosen representative to an annual convention of a charitable organization purchases an airline ticket to travel to the convention. The organization does not reimburse the delegate for the $500 ticket. The representative should keep a record of the expenditure, such as a copy of the ticket. The representative should obtain from the organization a description of the services that the representative provided and a statement that the representative received no goods or services from the organization.
Publication 1771 also reviews the disclosure requirements of charitable organizations.