Hurricane Milton made landfall late Wednesday night near Siesta Key in Sarasota County along the west coast of Florida, according to the National Hurricane Center. Milton, which had previously been labeled a Category 5 hurricane, diminished to a Category 1 storm as it moved inland. Still, storm surge warnings were in effect all along the coast on Thursday, and forecasts continue to call for heavy rainfall.
Authorities are still assessing the damage, but reports suggest over 3.2 million customers are without power.
Help
Help is already on the way. Just before the storm hit, President Biden reported that FEMA had staged 20 million meals and 40 million liters of water for Milton relief, and the Pentagon had prepositioned search and rescue teams, helicopters, and high-water vehicles as close to the storm as possible.
Organizations Accepting Donations
If you also want to help but aren’t sure where to start, tax-exempt charities that have indicated they are accepting Milton-specific donations include:
Airbnb.org. Airbnb.org is a charitable organization aimed at helping people find a temporary place to stay in times of crisis. As they did with Hurricane Helene, the organization says that those interested in offering free or discounted stays to people impacted by the hurricane can visit Airbnb.org for more information on how to sign up to host (Airbnb waives all service fees for Airbnb.org hosts and guests). You can also support people impacted by Hurricane Milton by donating to Airbnb.org—donations cover the cost of temporary stays for this response and other crises.
American Red Cross. To make a financial donation, visit redcross.org, call 1-800-435-7669, mail a donation form, or text REDCROSS to 90999 to donate to American Red Cross Disaster Relief, which helps people affected by disasters such as hurricanes, floods, earthquakes, wildfires, and tornadoes. You can designate your gift online to go towards Helene and Milton relief efforts.
(In addition, the cancellation of blood drives across the southeast have caused thousands of blood donations to go uncollected. Those outside the affected areas are encouraged to schedule a blood donation appointment here. If you’ve never given blood before, it’s super easy—my daughter and I give often. Bonus? They give you free cookies!)
Feeding America. The Feeding America network is still delivering food, water, and emergency supplies to the hardest-hit areas. Five Feeding America network food banks serve the area impacted by Hurricane Milton. Food banks and Feeding America have been busy staging emergency food, water, and supplies at food banks throughout the state and will now begin to assess the damage and needs of their communities. If you donate, you’ll be in good company—on Instagram, Feeding America CEO Claire Babineaux-Fontenot thanked Taylor Swift for her $5 million donation for victims of Helene and Milton.
Feeding Tampa Bay. Feeding Tampa Bay is a local organization that connects residents with hot meals and food banks. You can donate here.
Florida Disaster Fund. The Florida Disaster Fund is the State of Florida’s official private fund established to assist Florida’s communities as they respond to and recover from emergencies or disasters. Donations to the Florida Disaster Fund are made to the Volunteer Florida Foundation, a 501(c)(3) charitable organization, and are tax-deductible. Funds given at this time will be utilized for Hurricanes Helene and Milton. In addition, Visa, MasterCard, American Express, and Paypal/Braintree have committed to waiving fees for those donating to Hurricanes Helene and Milton’s recovery.
The Humane Society. The Humane Society’s Animal Rescue Team has been rushing to help transport animals in shelters to safety as Hurricane Milton makes landfall. The team is still working to help in the aftermath of the devastating Hurricane Helene. You can support rescue and response efforts by donating to the Emergency Animal Relief Fund.
Salvation Army. The Salvation Army’s emergency disaster relief efforts are underway across multiple states and are ready to meet the needs of impacted communities through feeding and sheltering operations. You can find out more and donate here.
Save the Children. Save the Children is partnering with local organizations to meet the needs of children and families affected by Hurricanes Helene and Milton. The Children’s Emergency Fund will move prepositioned child-focused supplies—including hygiene kits, diapers, and baby wipes—as well as classroom cleaning kits to schools and child care centers. You can donate here.
World Central Kitchen. World Central Kitchen’s Relief Team had prepositioned in Orlando and Ft. Lauderdale, Florida, ahead of Hurricane Milton’s landfall. To help Chef José Andrés feed those impacted by Hurricane Milton, visit WCK’s website.
(Please note that these are not endorsements of a specific charity. If you’re not a fan of those organizations listed, many other charities would welcome your support.)
Services
The Florida Disaster Legal Aid Helpline is available to eligible Florida residents or those with a pending legal issue in Florida. Residents can call 833-514-2940 for assistance or apply online. (Those who want to help can also make a donation, while attorneys who want to donate their time can sign up to help.)
Tips For Helping
If you want to know what you can do to help out, here are a few tips:
Cash is king. While you may want to send food and other items, the infrastructure may not support those donations. Many organizations have been clear that cash, or cash equivalent, is preferred. Keep receipts if you intend to claim those donations on your tax return.
Be smart. Be wary of personal solicitations on your doorstep or over the phone. Make sure that gifts made by checks or credit card gifts are secure. And don’t send money by text or using apps like Venmo without verifying the organization and contact information. If you don’t want to donate online or by text, most organizations have alternatives, like donation forms that you can mail with a check. Never send cash through the mail.
Use caution when donating to individuals. For federal income tax purposes, you can only deduct contributions to qualified tax-exempt charitable organizations. Donations to individuals are never deductible for tax purposes, even if the individuals are really deserving. If the tax deduction is important to you, consider working with an organization that provides disaster relief. But there’s another non-tax reason to use caution: money solicited for individuals could be part of a scam (like this one), and even if it’s not, the money might not be spent as advertised. Once you hand over the cash, you have no control over its use.
Rely on oldies but goodies. There’s nothing wrong with new charitable organizations but there is something to be said for those that have been around for a while. Brand new organizations may not have the facilities in place to offer the most effective relief, or they could be scams. Use caution before handing over your cash.
Tax Rules
As you consider which organizations might make the best use of your gifts, don’t forget to consider the impact that your charitable donations might make on your taxes. Many Americans donate even if they can’t claim a tax deduction. But some of the tax rules that apply to charitable donations—like checking to see that the organization has its paperwork in order—are good rules to follow even if you’re not claiming a tax deduction.
A tax deduction for charitable giving isn’t guaranteed just because you’re feeling generous. Here’s what you need to know:
Itemize. To claim a charitable deduction on your tax return, you must itemize your deductions.
Choose carefully when donating. Remember, only donations to qualified charitable organizations are deductible. Check out the credentials of a potential charitable organization before you donate. If you’re looking for a tax break, you can always confirm their charitable status through the IRS website using the TEOS Search Tool. You also can confirm charitable status by calling the IRS (toll-free) at 1.877.829.5500. Keep in mind that churches, synagogues, temples, and mosques are considered de facto charitable organizations and are eligible to receive deductible donations even if they’re not on the list (some exceptions apply, so be sure and ask if you’re not sure). Forbes also maintains a list of charities—you can check out our Top Charities 2023 list here.
Get a receipt—even for cash. As a best practice, always ask for a receipt. Almost any charitable organization will happily offer you one. You don’t have to submit this documentation along with your tax return, but you need to be prepared to provide it in case of an audit. Cash donations, no matter the amount, must be substantiated by a bank record such as a canceled check or credit card receipt, clearly annotated with the name of the charity or in writing from the organization. The writing must include the date, the amount, and the organization that received the donation.
Don’t overlook payroll deductions. Your employer may participate in a charitable giving program that allows you to make contributions directly from your paycheck. If you make a contribution by payroll deduction, record-keeping requirements require that you retain a pay stub, form W-2, or other document furnished by your employer that shows the total amount withheld as a charitable donation, along with the pledge card that shows the name of the charity. For federal workers, a pledge card with the name of a Combined Federal Campaign will meet these requirements.
Pay attention to the value of any donor incentives. A charitable donation is deductible only to the extent that the donation exceeds the value of any goods or services received in exchange. If you make a donation and receive something in exchange—anything from a coffee mug to a plated dinner—you can only deduct the cost of your donation less the value of the item received. If you’re not sure of the value of an item or service received after a donation, just ask. Most charitable organizations will do the math for you and document the value of your donation on their thank you letter or receipt.
Consider donating appreciated assets. Donating property that has appreciated in value, like stock, can result in a double benefit. Not only can you deduct the property’s fair market value (so long as you’ve owned it for at least one year), but you will also avoid paying capital gains tax. Normally, appreciated assets are subject to capital gains tax at disposition—whether by selling or gifting—but there’s an exception for donations to charitable organizations.
Don’t forget about retirement assets. Typically, if you want to make a donation from your IRA, you’d have to withdraw those funds, pay the tax, and then make the donation. There is an exception: a qualified charitable distribution (QCD) allows you to roll funds directly from your IRA to a qualified charity. Those amounts can be used to satisfy your required minimum distributions (RMDs) for the year, and the amount donated is excluded from your taxable income—you won’t even have to itemize to do it. The total amount of QCDs that you can exclude from your gross income increased to $105,000 in 2024, up from $100,000 in 2023.
You can’t deduct the value of your time. The IRS does not allow a charitable deduction for volunteering your services, even if you can easily put a dollar amount on your time. So if, as an architect, you usually charge $350 per hour and use that time to help a qualified charitable organization, you’re allowed a deduction of $0—that’s not a typo. The same rule applies whether you’re a lawyer, doctor, artist, nurse, accountant, or writer at Forbes.
You can deduct expenses related to volunteering. While you can’t deduct the value of your time, most out-of-pocket expenses relating to volunteering are deductible so long as they’re not reimbursed to you or considered personal. Out-of-pocket charitable expenses that might be deductible include parking fees and tolls; other travel expenses; uniforms or other related clothing worn as part of your charitable service; and supplies used in the performance of your services. For 2024, the rate for mileage driven in service of charitable organizations is just 14 cents per mile. The rate is currently fixed by Congress and is never adjusted for inflation—which is why it hasn’t budged in years, even though gas is more expensive. As with other donations, keep good records for out-of-pocket expenses—documentation is critical.
Document the value of your gift. Good records are always important when it comes to charitable giving, but even more so when it comes to donations of noncash items. You can generally take a deduction for the item’s fair market value—the price a willing buyer would pay to a willing seller. If you’re self-documenting the donation because it’s less than $500, be specific, noting the description and condition of the items. If you contribute property worth more than $5,000, you must obtain a written appraisal of the property’s fair market value. If you make noncash contributions (generally over $500), you may also be required to fill out one or more parts of Form 8283, Noncash Charitable Contributions.
Limits may apply. The amount you can deduct for charitable contributions is generally limited to no more than 60% of your AGI. Your deduction may be further limited to 50%, 30%, or 20% of your AGI, depending on the type of property you give and the type of organization you give it to.
Contributions are tax-deductible in the year they are made. That means that to make your gifts count during the tax year, they should must be made by December 31. Contributions made by text message are deductible in the year you send the text message if the contribution is charged to your telephone or wireless account. Credit card charges—even if they’re not paid off before the end of the year—are deductible so long as the amount is captured by year-end. Similarly, checks written and mailed by the end of the year will be deductible for this year even if they aren’t cashed in 2023. And, good intentions don’t count: making announcements that you intend to donate assets will not qualify for a deduction in the current tax year unless you make good on the pledge during the year.
Tax Relief
The IRS has not yet announced additional time to file and pay taxes as a result of Hurricane Milton (relief has been granted for Hurricane Helene). Check back for updates.
Read the full article here
