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Taxes and Your Donation

Beyond an investment from your heart, a donation to RMHC can also be a financial benefit come tax time.

Some considerations to ensure you get the maximum benefit from your generous donation:

As a nonprofit corporation, Ronald McDonald House Charities of the Bluegrass (RMHC) is classified by the Internal Revenue Service as exempt under IRC Section 501(c)(3) and as a public charity under IRC Section 509.

  • Keep records of your donations, including receipts or letters from RMHC acknowledging receipt of your donation. For your convenience, we will mail a tax receipt combining all of your financial donations for the prior calendar year to you in February.
  • Donations of more than $250 must be supported by record of payment from your bank (Canceled check, bank statement, etc.).
  • Generally, no more than 50 percent of your adjusted gross income can be deducted. If you donate more, carry that undeductable amount over into the next year.

If you volunteer, you cannot deduct the value of your services, but you may be able to deduct some expenses if they are:

  • Not reimbursed through your employer or anyone else.
  • Directly connected with the services you performed.
  • Expenses you had only as a result of your volunteer work.
  • Not personal, living or family expenses.
  • We recommend you contact a tax professional for more information.

In addition to donations from individuals, the following ways of giving also qualify for maximum tax benefits:

  • Private Foundations – As a public charity, RMHC is qualified to receive grants from private foundations. A grant to RMH will help your foundation satisfy its annual distribution requirements while helping RMH accomplish its mission of serving families whose children are receiving medical treatment.
  • Donations of Securities – In addition to donating cash to RMHC, individual donors may make gifts of publicly traded securities. The donor is not taxed on any gain in the property, and the donor may deduct the fair market value of the gifted securities against other income (subject to certain limitations).

Donors should seek the advice of a professional tax adviser.