How to Donate on Behalf of Someone Else

Donating on behalf of someone else offers a meaningful way to honor an individual or commemorate a significant event. This type of charitable giving allows a donor to support a cause they care about while simultaneously acknowledging another person, often for celebrations like birthdays, anniversaries, or in remembrance of a loved one. It provides a thoughtful alternative to traditional gifts, channeling resources to organizations that address various societal needs. The act signifies a dual purpose: philanthropy and personal tribute.

Choosing the Right Charitable Organization

Selecting an appropriate charitable organization is a foundational step. Ensure the chosen entity aligns with the honoree’s values or the tribute’s purpose. Researching a charity’s mission, programs, and how it utilizes donations helps determine suitability.

Before contributing, verify the charity’s tax-exempt status with the Internal Revenue Service (IRS). Use the IRS Tax Exempt Organization Search tool to confirm if an organization is a 501(c)(3) public charity. Donations to such organizations are generally tax-deductible for the donor.

Reviewing a charity’s financial transparency and impact reports provides insight into its operational efficiency and effectiveness. Many organizations publish annual reports detailing their expenditures and the outcomes of their programs. This due diligence ensures the donation will be used responsibly and effectively towards its stated mission.

Making the Donation and Honoree Notification

Once a suitable charitable organization is identified, make the donation. Most charities offer various methods for contributing, including online payment portals, mail-in forms, or phone donations. Online platforms typically have fields to designate the gift as “in honor of” or “in memory of” an individual.

Clearly provide the honoree’s full name and any specific message. Many organizations offer to send a notification card or email to the honoree or their family, informing them of the gesture. Providing accurate contact information ensures they receive this acknowledgment.

For donations made via mail, a note with the check or payment can specify the honoree’s details and the tribute’s nature. This helps the charity process the donation correctly and ensures the honoree is properly recognized. Confirming the charity’s notification process provides assurance the tribute will be communicated as intended.

Tax Considerations for Donors

Understanding tax implications is important for individuals making charitable contributions. The tax deduction is typically claimed by the individual or entity that makes the donation, not the person being honored. The eligible donor can potentially reduce their taxable income.

To claim a deduction for charitable contributions, taxpayers generally must itemize deductions on their federal income tax return. Donors are required to maintain adequate records to substantiate cash contributions. For any single contribution of $250 or more, a written acknowledgment from the charitable organization is required. This acknowledgment must include the amount of cash contributed, a description of any non-cash property given, and a statement indicating whether the organization provided any goods or services in return for the contribution.

Limitations apply to the amount of cash contributions deductible in a single tax year, generally up to 60% of a donor’s adjusted gross income (AGI) for cash donations to public charities. Contributions of appreciated property, such as long-term capital gain property, typically have a lower limitation, often 30% of AGI. If contributions exceed annual AGI limits, the excess may be carried forward and deducted in up to five subsequent tax years. More information can be found in IRS Publication 526, “Charitable Contributions.”