Giving Back on the Outer Banks: What to Know About Tax-Deductible Gifts

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As the year winds down here on the Outer Banks, many of us start thinking about giving back—to the places, people, and causes that make this community so special. Whether you’re supporting your favorite local nonprofit or exploring new ways to make an impact, it’s also a great time to understand what your gifts mean for tax purposes.
Here are a few things to keep in mind:
  • Not all nonprofits are the same. To be eligible for a tax deduction, your gift must go to an organization recognized by the IRS as a 501(c)(3) public charity—those working for charitable, educational, or similar purposes.
  • Some important community groups aren’t deductible. Civic clubs, neighborhood associations, and social welfare organizations do vital work here on the Outer Banks but often fall under different IRS categories like 501(c)(4) or 501(c)(6), which means gifts to them typically aren’t tax-deductible.
  • “Nonprofit” doesn’t always mean “tax-exempt.” Nonprofit is a state designation; tax-exempt status comes from the IRS, and only some tax-exempt groups qualify as charitable for deduction purposes.
We know—it can feel complicated! That’s why the team at the Outer Banks Community Foundation is here to help. We work every day with donors and local nonprofits across Dare County and beyond to make sure your giving is both meaningful and informed.
At the end of the day, tax savings are nice—but the real reward is seeing your generosity strengthen the Outer Banks community you love. As you plan your year-end giving, reach out to us anytime. We’d be honored to help you give wisely, joyfully, and with lasting local impact.
— Your friends at the Outer Banks Community Foundation