Final answer:
Option a. True. Giving to a nonprofit organization can lower your taxable income if the organization is qualified and the donation meets IRS regulations. Donations may be tax-deductible, allowing you to reduce the amount of your gift from your taxable income, but there are rules and limitations to consider.
Step-by-step explanation:
True. Giving to a nonprofit organization can indeed help lower your taxable income. When you make a donation to a qualified nonprofit organization, such donation may be tax-deductible, meaning you can subtract the amount of your gift from your taxable income. It is important to note that there are limits and rules regarding how much can be deducted and the types of contributions that are eligible for a tax deduction. For instance, to claim a deduction, you must itemize your deductions on your tax return instead of taking the standard deduction.
Advantages of Non-Profit Organizations include being set up to benefit causes that founders care about, attracting others with similar interests to support the cause, and having no tax liability for the organization itself. However, whether a donation to such an organization would reduce your taxable income depends on your compliance with IRS regulations.
It is always advisable to consult with a tax professional or accountant to understand the impact of giving to a nonprofit on your individual financial and tax situation.