Tax deductibility for a donor is based on the total amount donated to any IRS-certified 501(c)(3) nonprofit minus services rendered or goods received. Nonprofits pay the processing costs of donations, but donors have the option to increase their donation by an amount equal to the processing fees in order to offset the fee amount for the donation. This allows the nonprofit to realize the full amount of the intended donation, and the full amount of the transaction remains tax-deductible for the donor (minus any goods or services received). For example, if a donor elects to cover the processing fee on a $25 donation, then it is likely the increased amount (i.e. $25.82) would be tax-deductible.

Please reference your gift acknowledgement from the nonprofit for full details on each gift’s tax deductibility, as Cheerful does not provide tax advice and the nonprofit is ultimately responsible for providing specific tax information on the deductibility of gifts. 

All information above is intended to be educational in nature, and is not intended to be, nor should it be construed as, legal or tax advice.  Tax benefits and consequences differ from person to person and from organization to organization; and vary depending on the federal or state laws applicable to each. We rely on the expertise of our nonprofits to advise you of the deductibility of your donations.

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