Charitable Donation

DEFINITION of 'Charitable Donation'

A gift made by an individual or an organization to a nonprofit organization, charity or private foundation. Charitable donations are commonly in the form of cash, but can also take the form of real estate, motor vehicles, appreciated securities, clothing and other assets or services.

BREAKING DOWN 'Charitable Donation'

Charitable donations often represent the primary source of funding for many charitable organizations and nonprofit organizations. In most countries, a charitable donation made by an individual will provide him or her with an income tax deduction.

RELATED TERMS
  1. Bargain Sale To A Charitable Organization

    The sale of a good or service to a charitable organization for ...
  2. Proof of Charitable Contributions ...

    Substantiation required by the Internal Revenue Service for a ...
  3. Form 8282: Donee Information Return

    An IRS tax form used by organizations to report the sale or disposition ...
  4. Charitable Lead Trust

    A trust designed to reduce beneficiaries' taxable income by first ...
  5. Philanthropy

    Charitable giving to human causes on a large scale. Philanthropy ...
  6. Nonprofit Marketing

    Activities and strategies employed by a nonprofit organization ...
Related Articles
  1. Saving and Spending

    Top Tips for Maximizing Charitable Deductions

    Charitable donations can be a great financial planning tool. Here are some ways to make the most of them.
  2. Taxes

    How To Deduct All Of Your Charitable Donations?

    Donations made to charitable organizations can reduce your taxable income, thus your overall tax bill. But not all donations qualify to be deductable.
  3. Taxes

    Tips on Charitable Contributions: Limits and Taxes

    An overview of the limits and tax deductions of charitable donations.
  4. Personal Finance

    How To Make Your Holiday Giving Count

    With so many nonprofits to choose from, how do you know where to send your charitable dollars?
  5. Personal Finance

    Charitable Giving Without Spending A Dime

    Not all donations are monetary. Learn how you can support your favourite charity without damaging your bank account.
  6. Personal Finance

    How to Pick a Charity

    The increasing number of charitable organizations mean the competition is fierce for your charitable dollars. Use these tips to research before donating.
  7. Personal Finance

    Most Effective Charitable Organizations

    We look at some of the world's top charities and see how much of their donation money actually goes towards fulfilling their missions.
  8. Taxes

    5 Steps To Forming A Tax-Exempt Nonprofit Corporation

    Before you tackle this challenge, know the challenges of forming and operating an official nonprofit organization.
  9. Home & Auto

    Using Life Insurance To Make Charitable Donations

    Your life insurance policy can be a great tool for charitable giving. Find out how.
  10. Taxes

    Government Could Limit Chartiable Tax Deductions

    The desperate search for revenue by the U.S. government means one of the key deductions that may be up for either reduction or elimination is for charitable giving.
RELATED FAQS
  1. What are the tax deductions for donating office space to a non-profit?

    I have a small (1,500 sq ft) stand-alone office building and parking lot that I donate a 100% of to the American Red Cross. ... Read Answer >>
  2. Do nonprofit organizations have working capital?

    Discover why financial reserves in the nonprofit world are equivalent to working capital used by for-profit businesses, and ... Read Answer >>
  3. What's the largest charitable donation Warren Buffett ever made?

    Learn about Warren Buffett's biggest financial contributions and how his estate is to be divided between charity and Buffett's ... Read Answer >>
  4. What is the best place to invest the donation we have received?

    We are a small non profit organization with an annual operating budget of $70K. We received a pretty sizable donation (approx. ... Read Answer >>
  5. How do NGOs get funding?

    A non-governmental organization (NGO) is a non-profit, citizen-based group that functions independently of government. NGOs ... Read Answer >>
  6. How does revenue recognition differ between profit and non-profit companies?

    Read about some of the differences between for-profit and nonprofit, or not-for-profit, revenue recognition rules according ... Read Answer >>
Hot Definitions
  1. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  2. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  3. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  4. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  5. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  6. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
Trading Center