Political Contributions and Taxes
Are Political Contributions Tax Deductible ?
It’s hard to turn on the TV and not see a political ad or commentary on the candidates. No matter who you are pulling for, they continue to make the case that they need your dollars to win. Less than 1% of the US population donates in the presidential election and they contribute nearly $1B dollars just to the top of ticket. Many people simply donate $5-10 but others donate up to the $2,700 limit per person for the primary and the general election. Do you know if the dollars you have donated are tax deductible? Di you give to a candidate or a political party or a PAC…The answers are different for all.
Short answer – NO. To be tax deductible, the organizations you are donating to must have a 501(c)3 status with the IRS. One of the large stipulations for maintaining that nonprofit status is that 501(c)3 organizations “are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office.” What this means is campaigns are not nonprofit organizations and therefore not tax deductible.
You can still have your voice heard through the almighty dollar by donating to nonprofit organizations. Find active groups who align with your views, such as groups that focus on educating voters on important issues and those who hold voter registration drives. Several have different divisions some of which are tax deductable. Always ask! Many nonprofits are able to participate in limited endorsement of candidates. They are also able to encourage candidates to support the organization’s cause.
There aren’t many things more American than participating in our democratic process. If you decide to exercise your voice by making a financial contribution to the candidates of your choice, just remember the information provided above. Even if you don’t make a donation make sure you do your part and vote. Remember that voting is our most basic civil right….Exercise it!
The Law Office of Robert Housman
310-276-3550
rhousmanlaw@gmail.com
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