Note: To view the previous posts I have written on charitable contributions, click on either of the links below.
However, as I constantly am reminded by her follow-up question, I most certainly do not have all of the answers. Not by a long shot!
- Dental Insurance
- Medical Insurance
- 401K Contributions
- Vision Insurance
- Flexible Healthcare Spending Accounts
So, after looking at the evidence, it is looking like I will have to report to my friend that she cannot contribute to charities with her pre-tax funds.
Two Other Interesting Findings
As I was searching for an answer to my friend’s question, I came across two other interesting things that are worth sharing:
- First, I found an Austrailian website, CareAustralia.org, that says that charitable gifts to help their efforts are made on a pre-tax basis.
- Therefore, it makes me think that donating money pre-tax is possible in other countries. Does anyone have experience with this?
- Second, I found that if you are over the age of 70.5 years old, you can make a Qualified Charitable Donation from an IRA using your pre-tax funds in the account. See the link below from Ameriprise for more information about this.
- Ameriprise.com – Charitable Tax Donations
Have you tried and/or been successful at donating money on a pre-tax basis? Did you meet any obstacles? Are any of the ex-United States readers out there able to do this?
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Related articles about taxes and donations/charitable contributions at several of my favorite personal finance blogs:
ChristianPF.com – See the Impact When You Donate to Charity
Smartmoney.com – Investigate Your Charity Before You Donate