Philanthropic giving tocolleges and universitiesin the United States is a big business.
Yet, the bulk of these came from organizations.
Contributions from individuals actually went down 10% year over year.
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This is on par with statistics from colleges like Williams, Amherst and Bowdoin, according to Statista data.
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Donations to qualified organizations, like tax-exempt academic institutions, are generally eligible for tax deductions.
Most universities have an established philanthropic program so alumni can contribute funds to their school.
Sometimes, they designate exactly where they should go.
That, however, ended this year.
Dartmouth College was second, at 36%.
How To Maximize Tax Benefits from College Donations
Donations are tax-deductible.
The first and most important way college donations yield tax benefits is that they are tax-deductible.
But there are some important things to remember.
You typically itemize deductions on Schedule A (Form 1040).
The organization details the various dates based on method of contribution, i.e.
check or credit card.
Tax deductions on charitable contributions are generally limited to up to 60% of your adjusted gross income.
Depending on certain types of contributions or organizations, these limitations could be even lower, i.e.
30 or 50%.
Some states offer tax credits.
While tax deductions decrease your overall taxable income, tax credits take money away from your actual tax bill.
You brew coffee at home, you dont walk into Target and you refuse to order avocado toast.
(Can you sense my millennial sarcasm there?)
Charitable contributions are generally deducted in the year you give them.
Always request a tax receipt form.
We have three small words for you: tax receipt form.
You always want a receipt, right?
Tax deductions can also be carried forward.
The IRS allows for a maximum carryover period of charitable contributions of five tax years, per Thomson Reuters.
Still, its better to save the deduction for sometime in the future than to lose it entirely.
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see to it you take an itemized deductionor know about the universal charitable deduction.
Its important to note that you maximize your tax benefits when you take itemized deductions.
But if you are able, taking itemized deductions generally makes the most sense for bigger-ticket philanthropic donors.
Her work has appeared in Teen Vogue, Smithsonian Magazine and the Tampa Bay Times.
