Tips for Giving to Charitable Causes

Business Corner

Tips for Giving to Charitable Causes

by Heidi Williamson, Berks County Community Foundation

As the season of giving approaches, people often open their hearts and their wallets for good causes. In some cases, donations to those causes may be deducted from your taxes, but not always. If you’re hoping to support a cause and take advantage of a tax deduction, be sure to check with your accountant or attorney before you write that check or click “give.”

“There are many caring things that people do that are not considered charitable in the eyes of the Internal Revenue Service,” said Frances A. Aitken, CPA, chief operating officer at Berks County Community Foundation. “That doesn’t necessarily mean you shouldn’t give, but it’s good to be aware of the types of donations that do not qualify for a deduction.”

In general, donations to the following types of organizations qualify for the charitable tax deduction: • Public charities as defined by section 501(c)3 of the internal revenue code. You can search for organizations by name at www.irs.gov/charities-non-profits/search-for-tax-exemptorganizations and look for deductibility code “PC.” • Religious organizations such as churches, temples, and synagogues. • Nonprofit educational institutions, although be sure to check to see if your school has a foundation that accepts donations on its behalf. • Governmental organizations, although sometimes governmental organizations such as parks, libraries, or police K9 units prefer donations be made to a “Friends” group that is a 501(c)3 public charity.

In general, donations to the following types of causes DO NOT qualify for a tax deduction: • Donations to support a specific family or individual who is in need or who has experienced a loss. • Donations to membership organizations that are not listed as public charities, such as private clubs, even if they are small and don’t make a profit. • Donations to parent volunteer groups that are not under a school’s umbrella or listed as a public charity. • Donations to start-up business ventures.

This list is not exhaustive, and regulations change often, so be sure to seek the advice of a qualified financial professional if you are unsure if your donation is tax-deductible. “At the Community Foundation, we manage funds created by local people to provide grants for causes they care about,” Aitken said. “We’re governed by IRS rules too, so we always check the charitable status of an organization before we issue a grant. If you’re interested in the charitable deduction and you aren’t sure if the organization you’re giving to is charitable, call your accountant.”

To make a tax-deductible gift to a charitable fund managed by the Community Foundation, visit www.bccf.org and click “Give Now.” With more than 370 charitable funds under management, you’re sure to find one that provides grants or scholarships for a cause you care about. To learn more about creating a charitable fund of your own, call the Community Foundation at 610-685.2223.

Help to Raise the Voice of Every Child

The Berks Youth Chorus needs help to make the power of singing affordable for area youth.

The lives of many young people became unsettled during the pandemic, and kids experienced loneliness at home which unfortunately affected the mental health of many. Simultaneously, music programs at some schools have been either eliminated or cut back to focus more fully on academics.

Studies show that singing in a chorus encourages participants to be more disciplined, social, and teamspirited, improves their ability to memorize, and even inspires the achievement of higher grades. On a personal level, choral singers increase their self-confidence and self-esteem, traits that will benefit them for a lifetime.

The Berks Youth Chorus is responding to raise the voices of local children. No singers are turned away who are unable to pay, and 88% of the youth have received subsidies through a sliding scale tuition program.

Berks Youth Chorus is continuing to evolve and grow its membership, with its youngest ensemble, the Choristers, singing again and now directed by BYC Alum Sara Kreider. The chorus performers are singing in communities that haven’t heard the youth in years and audiences are even being entertained by music written by our singers. www.berksyouthchorus.org

201 Washington St. #506b, Reading, PA 19601