Can Donations to Our Homeowners Association Be Deducted on Our Personal Tax Return?

Answer- No. Even though your homeowners association is a “tax-exempt” organization and/or a “non-profit mutual benefit corporation”, it is not a “qualified organization”. Only donations to qualified organizations are deductible as charitable contributions on your tax returns. Qualified organizations are defined by the Internal Revenue Service. Some examples of qualified organizations are as follows:

• Religious organizations
• Federal, state and local governments, if your contribution is solely for public purposes
• Nonprofit schools and hospitals
• Public parks and recreation facilities
• Nonprofit charitable organizations, such as Salvation Army, Goodwill, United Way, etc.
• Nonprofit educational organizations, such as colleges, museums, Boy and Girl Scouts, etc.
• War veterans’ groups

The IRS Publication 78 lists most qualified organizations. This can be ordered from the IRS or viewed on their website www.irs.gov.