Definition
Money or items you give to nonprofit organizations. Donations can be tax-deductible if you itemize your taxes.
What to consider
- Decide in advance how much you’re comfortable donating.
- Keep receipts for potential tax benefits.
- Ensure the organization matches your values and goals.
Real world scenarios
- Grace donates monthly to a local animal shelter, tracking receipts for a possible tax deduction at year-end.
- Malik sets aside a portion of each paycheck for charitable causes, boosting both community impact and personal satisfaction.
- Jenna's donation to a hurricane relief fund helps fill urgent supply gaps while offering her a tax benefit.
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