Tax Incentives
Individuals who make gifts to the Community Foundation of Central Wisconsin are able to take advantage of unique tax incentives.
Because the federal government recognizes the Community Foundation as a 501(c)(3) organization, donors may take both federal and state charitable deductions on their gifts to our funds.
The Community Foundation: A Charitable 501(c)(3) Organization
The IRS defines the Community Foundation of Central Wisconsin as a charitable, nonprofit 501(c)(3) organization.
Tax Benefits of Giving to a 501(c)(3) Organization
Under IRC Section 170, individuals giving to a 501(c)(3) organization that is a public charity (e.g. the Community Foundation of Central Wisconsin) may deduct contributions representing up to 50% of the donor's adjusted gross income (AGI) if the individual itemizes on his tax returns. Corporations may deduct all contributions to 501(c)(3) organizations up to an amount normally equal to 10% of their taxable income.
Tax Benefit Example
The chart below gives an example of the deduction for a single person in each tax bracket making a cash donation of $100 to the Community Foundation of Central Wisconsin. When filing your taxes, the instructions for the Form 1040 will help you determine the exact amount of your deduction, which will vary depending on your tax bracket and whether you file as a single person or jointly.
Tax Bracket |
Donation Amount |
Benefit |
Out-of-Pocket Cost |
10% |
$100 |
$10 |
$90 |
15% |
$100 |
$15 |
$85 |
25% |
$100 |
$25 |
$75 |
28% |
$100 |
$28 |
$72 |
33% |
$100 |
$33 |
$67 |
35% |
$100 |
$35 |
$65 |
