Charitable Contributions to foreign organizations
In general, foreign contributions are not deductible. There are exceptions for contributions made to organizations in Canada, Mexico, and Israel.
Exceptions:
Canada
The taxpayer may deduct contributions to certain charitable organizations under the income tax treaty with Canada. The taxpayer must have Canadian source income.
Mexico
The taxpayer may deduct a contribution to certain charitable organizations under the income tax treaty with Mexico. The organization must meet tests that are essentially the same as the tests that qualify U.S. organizations to receive deductible contributions. The organization should provide information about whether it meets these tests. To deduct a contribution to a Mexican charity, the taxpayer must have income from sources in Mexico.
Israel
The taxpayer may deduct contributions to certain charitable organizations under the income tax treaty with Israel. To qualify for the deduction, the contribution must be made to a charitable organization established under the laws of Israel. The deduction is allowed in the amount permitted if a U.S. organization, but is limited to 25% of the taxpayer's adjusted gross income from Israeli sources.
Before you make a contribution
If contributions made to certain Canada, Israel, and Mexico organizations meet the same qualifications that a U.S. organization meets under U.S. tax law, then you can deduct your contribution. The organization itself can tell you whether or not it qualifies. If the organization is unable to provide you with an answer, you can contact the IRS and they will be happy to tell you.
You cannot deduct more than the percentage limit imposed upon Canadian, Israeli, and Mexican source income. If you or a family member is enrolled in a Canadian university or college, there is no deduction limit on the contributions made to the school. This is frequently referred to as the United States-Canada Income Tax Treaty.
The taxpayer may deduct contributions to certain charitable organizations under the income tax treaty with Canada. The taxpayer must have Canadian source income.
Mexico
The taxpayer may deduct a contribution to certain charitable organizations under the income tax treaty with Mexico. The organization must meet tests that are essentially the same as the tests that qualify U.S. organizations to receive deductible contributions. The organization should provide information about whether it meets these tests. To deduct a contribution to a Mexican charity, the taxpayer must have income from sources in Mexico.
Israel
The taxpayer may deduct contributions to certain charitable organizations under the income tax treaty with Israel. To qualify for the deduction, the contribution must be made to a charitable organization established under the laws of Israel. The deduction is allowed in the amount permitted if a U.S. organization, but is limited to 25% of the taxpayer's adjusted gross income from Israeli sources.
Before you make a contribution
If contributions made to certain Canada, Israel, and Mexico organizations meet the same qualifications that a U.S. organization meets under U.S. tax law, then you can deduct your contribution. The organization itself can tell you whether or not it qualifies. If the organization is unable to provide you with an answer, you can contact the IRS and they will be happy to tell you.
You cannot deduct more than the percentage limit imposed upon Canadian, Israeli, and Mexican source income. If you or a family member is enrolled in a Canadian university or college, there is no deduction limit on the contributions made to the school. This is frequently referred to as the United States-Canada Income Tax Treaty.
Before you make any contribution, make sure you check what is and is not deductible on your income taxes. Make sure you research before donating to a foreign charity. You know that if the organization does not have any United States interest and is not based in Canada, Israel, or Mexico, a deduction to that particular donation will be disallowed.
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