The Importance of Choosing Tax-Exempt Charities in the Atlanta Area
Choosing from among all the charities in Atlanta can be difficult, especially when you realize that some groups call themselves charities without being officially qualified as non-profit organization by the IRS. But what does it mean to be a qualified charity, and how can you determine if the charities you’re considering donating to meet this basic qualification? American Kidney Services (AKS) is here to answer these questions and give you some tips on doing your own research on local charitable organizations.
- What does it mean when a charity is tax exempt? – This means that the charity has been approved by the IRS as a non-profit organization and is not required to pay federal or state income taxes on its proceeds.
- Why is this important? – Tax-exempt status means that the organization’s earnings do not benefit any one individual or shareholder. Profits are used according to the guidelines set forth in section 501 (c)(3) of the Internal Revenue Code.
- Why should this matter to me, the donor? – A tax-exempt, 501 (c)(3) status means that the money or non-cash contributions you donate to the charity are tax deductible*. Therefore, the amount (or estimated value) of your donation can be subtracted from your total amount of taxable income when you file your tax return.
- How can I find out if a charity has tax-exempt status? – You can contact your local IRS branch for information regarding registered charities, or you can ask the charity directly to send you a copy of its “Letter of Determination,” which states the IRS’s approval of its tax-exempt status.
To learn more about the top charities in the Atlanta Metro area, you can also use online charity evaluation sites or ask your friends and family members which charity organizations they prefer and why. If you are a resident of Atlanta, Alpharetta, Dunwoody, Sandy Springs, Vinings, Doraville, or a nearby area and would like to gather information about AKS and the types of donations we accept, please call 770-609-2200 or fill out our online contact form. We are a tax-exempt, 501 (c)(3) charitable organization, and donations to our charity are tax deductible*.
*To the fullest extent allowed by law