We have had many requests about how dancers can receive tax credit for their charitable donations. This page will attempt to answer some of the questions that we have received. Please note that we are not tax preparers, and any specific questions you have about your specific tax needs should be directed to your tax preparer or the IRS.
This information is not Square Dancers for Katrina-specific - it would apply to any charitable donatiosn you make.
The IRS website (www.irs.gov) has information right on the front page about how to donate towards disaster relief and things to be aware of. They have posted a specific bulletin at http://www.irs.gov/newsroom/article/0,,id=147133,00.html with information encouraging taxpayers to donate, including information on charitible deductions and the guidelines for deductions. Quoting from the IRS website:
Taxpayers may claim a deduction for contributions to charitable organizations only if they itemize deductions on Schedule A of their Form 1040. They should retain proof of the contribution and, if the amount is $250 or more, must obtain an acknowledgement from the charity for the amount to be deductible.
For most cases, your cancelled check or credit card receipt or PayPal acknowledgement will be sufficient proof of your contribution, especially for donations under $250. If you purchase supplies, retain your store receipt, clearly mark it as donated to Katrina relief, and that should be sufficient proof. If you drop a couple of bucks in a bucket, make note of the amount and the date and store that with your tax papers. We recommend writing checks or money orders if you are unsure.
For donations from individual/business over $250, as required by law, GSI will send an acknowledgement to the individual/business, providing we have their complete mailing address and can identify individual donations of over $250.
For clubs/groups that are collecting from their dancers, we recommend the following if people want a formal receipt for their donations: Have a clearly marked, visible sign-up sheet by your donation bucket available where people wishing to receive a receipt can PRINT their name, mailing address, and their particular donation amount. (We have posted a simple sample in the right-hand sidebar.) Include this sign-up sheet when you send your donation in. GSI will send out receipts to people requesting them.
Again,,, please note that for donations under $250, you are covered with your cancelled check, credit card receipt, or PayPal payment notification.