All Charitable Deductions Are Not Created Equal

With the end of the year approaching, your supporters may be thinking about making charitable contributions they can deduct on their 2017 federal tax returns. Here is some information your supporters may find helpful when thinking about different types of donations, some of which are not tax deductible at all.

What Can Be Deducted?

Generally, donors can deduct contributions of money or property. The amount of the allowable deduction varies based on the type of property donated:

• Cash
  Cash donations are 100% deductible, including donations made by check, credit card or payroll deduction.
• Ordinary Income Property
  Donations of this type are generally limited to the donor's tax basis in the property, which is the amount the donor paid for the property. Specifically, donors can deduct the property's fair market value (FMV) from the amount that would be ordinary income or short-term capital gains if they sold the property at FMV. Property is considered