Tax-Deductible Donations with IITGAA

As the year draws to a close, it's an opportune moment to reflect on the capabilities of the Indian Institute of Technology Guwahati Alumni Association (IITGAA) in the USA, especially concerning the types of donations it can accept and their tax implications.

Types of Donations and Tax Deductibility

Donations and Contributions to IITGAA

Being a tax-exempt private foundation under section 501(c)(3) of the U.S. Internal Revenue Code, IITGAA can accept a variety of donations directly, including:

• Cash donations: Direct contributions made to IITGAA's official accounts, typically offering tax deductibility within IRS guidelines.
• In-kind donations: Goods and services, like equipment or event sponsorships, are valuable contributions to support IITGAA initiatives.

These donations are generally tax-deductible for the donor, meaning IITGAA is capable of receiving them today (in a tax-exempt manner) and the donor can reduce their taxable income by the amount of their contribution. This is enabled by the manner in which our USA entity was established .

The Case for Tax-Deductible Donations

Donations made to individual families, such as those of deceased alumni (for example), fall into a different category. While these contributions are noble and empathetic, they are considered personal gifts and are not tax-deductible as charitable donations.

This is a crucial distinction, as funds given to support individual families cannot be claimed as charitable contributions under IRS guidelines, however there are nuances. It's important to note that the mode of donation can affect its tax status. For instance, campaigns run through private services like GoFundMe (for-Profit organization) are not directly associated with IITGAA’s 501(c)(3) status and thus may not qualify for tax deductions. Donors seeking tax benefits should ensure their contributions are made directly to IITGAA accounts.

Contribute directly to IITGAA through our preferred channels:

1. Bank Transfer: Donate securely through direct bank transfer by using Account number and routing number or Zelle. You can also have a Check Payable to IITGAA: Mail a check payable to IITGAA mailing address . We will soon enable a digital channel for donations.
2. Documentation: Maintain proper documentation for your contribution, including: Receipts: Keep a copy of your online donation receipt or check.
3. Itemized Deductions: When filing your taxes, claim your eligible donation as an itemized deduction on Schedule A through the tax-deductible receipts provided by IITGAA.

IITGAA's current setup in the USA offers a great start in creating a robust platform for effective fundraising and responsible fund management. While it opens avenues for tax-deductible donations for a variety of causes, it also adheres to strict guidelines on what constitutes a charitable contribution under U.S. tax laws. As we look forward to another year, understanding these nuances becomes important in maximizing the impact of our collective efforts while ensuring compliance and transparency.

For specific tax-related advice, donors are encouraged to consult with a tax professional to understand how their contributions to IITGAA might affect their individual tax situation.