A private operating foundation is a private foundation that devotes most of its earnings and assets directly to the conduct of its tax exempt purposes, rather than to making grants to other organizations for these purposes. Other organizations tax exempt under this section of the Internal Revenue Code include civic associations, some volunteer fire departments, and local associations of employees. Volunteer fire companies and similar organizations, if the contributions are to be used for public purposes. Examples include the Reconstruction Finance Corporation, Federal Reserve Banks, and Federal Credit Unions. General Tips on Deducting Contributions 1.
Contributions are deductible for the year in which they are actually paid or delivered.
Pledges are not deductible until the year in which they are paid. The value of volunteer time or services to a charitable organization is not deductible. Contributions for which the donor receives a gift or other kinds of benefits are deductible only to the extent that the donation exceeds the value of any benefit received by the donor. Direct contributions to needy individuals are not deductible. Contributions must be made to qualified organizations in order to be tax deductible.