What Is Charity?

It's important to remember that not all nonprofitorganizations qualify as charitable organizations.The IRS determines whether donations to an organizationare deductible. Generally, eligible organizationsoperate for one or more of the following purposes:charitable, educational, religious, scientific,literary, athletic, or animal rights.

If you're uncertain if an organization qualifies asa charitable organization, call the IRS forms line(800-829-3676) and request publication 526. You canalso check with the Independent Charities of America(800-477-0733; www.independentcharities.org),which prescreens and certifies quality charitable organizations.The National Charities Information Bureau(212-929-6300; www.give.org) is also a good source. Itcan provide you with information on administrativecosts for a wide variety of charities.