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Hurricane Harvey made landfall over the weekend. The category 4 hurricane crashed into the Texas coast, devastating families and businesses. At least two people have been reported dead, and estimates place the total cost of property damage and lost businessĀ in the billions.
The rules for charitable giving apply even in extraordinary situations although sometimes those rules may be tweaked to allow for more generosity. Stay informed.
I know that many of you, like me, want to know what you can do to help out. Some of the tax rules that apply to charitable donations - like checking to see that the organization has its paperwork in order - are good rules to follow even if you're not claiming a tax deduction. So with that in mind, here are a few tips to keep in mind when helping out during Harvey:
- Stay put. Yes, we all want to get in our cars and help but don't rush to help without checking first. There are already professionals and trained volunteers on the scene, and due to the potential for more flooding, relief officials have asked that folks stay off the roads where possible. If your services are needed and you do volunteer, remember that you can claim a tax deduction for your out-of-pocket expenses but not for your time.
- Check with the organization first. While most organizations prefer cash, there are some soliciting in-kind donations (see below). Those wish lists may change as needs are assessed and storage for items may be limited. Check with the organization before you send or drop off anything. And if you're planning to claim a tax deduction for any in-kind goods, be sure to keep receipts showing what you paid for the items.
- Pay attention to the rules. The rules for charitable giving apply even in extraordinary situations although sometimes those rules may be tweaked to allow for more generosity. Stay informed. Be sure to document your gifts and get receipts. And never hesitate to ask the charitable organization or your tax professional if you have questions.
Read the source article at Forbes Welcome
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Kelly Phillips Erb is a staff writer at Forbes.