Submitted By: Leon
Answered: November 18, 2016 8:30 am

Can I donate to a needy person who’s been a victim in a federally declared disaster area?

Unfortunately, no. Of course, you are free to make donations to whomever you choose,  but the tax law limits deductible contributions to those made to 501(3)(c) organizations. Explore the organizations benefiting individuals impacted by the disaster you’re concerned about so you can decide whether to make donations to these organizations. Watch out for fake organizations purporting to help victims. Check the organization’s tax exempt status through the IRS’ Exempt Organization Select Check tool. Check the charity’s rating at Charity Navigator.

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Tax Glossary

Partnership

An unincorporated business or income-producing entity organized by two or more persons. A partnership is not subject to tax but passes through to the partners all income, deductions, and credits, according to the terms of the partnership agreement.

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