The new law also clarifies record keeping rules for those of you who donated via text message.
Your telephone bill will be sufficient if it shows the name of
the organization to which you donated, the contribution date and its amount.
In addition, the IRS has designated the Haiti situation a qualified
disaster for federal tax purposes.
As I noted in my first post on donations to the devastated island nation, this designation was sought by the Council on Foundations.
With the IRS making it official, employer-sponsored private foundations can assist
victims in Haiti without it causing the foundation any tax problems. More importantly, recipients of qualified disaster relief payments don't have to count that money as taxable income.
Private foundation payments generally include money to employees in the disaster area to help them pay necessary personal,
family, living or funeral expenses that were not covered by insurance.
The money also is often used to pay for repair of homes and belongings, again where such items are not covered by insurance.
Now those folks in Haiti who are U.S. taxpayers won't have to worry about taxes on such desperately needed financial help.
- Congress OKs accelerated tax deductions for donations to Haiti
- Red Cross receipts for text donations
- Special tax breaks proposed for Haitian earthquake relief donations
- Craig's wise words about Haiti's crisis
- Year-end Money Moves 2009: Giving
- The 12 Tax Tips of Christmas: #4 Be Charitable
- Keep the giving going
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