10 Tips for Donating To Charity

Charities, which are many and varied, play an important role in serving and helping the less fortunate, promoting specific causes and improving the health, social, and environmental structures of communities. However, due to the serious economic decline, many charities and non-profits have seen a significant reduction in contributions, while at the same time, experiencing an increase in demand for their goods and services. Notwithstanding, the economic challenges facing several people today, donating to charity whether in cash, kind or time should be on your list of concerns and things to be done. There are many reasons why you should donate to charity. These may include being able to help and care for other people or supporting and promoting a cause about which you are passionate. You may also give to charity because you want to feel happy and altruistic about reaching out to and helping others. If you want to make a difference in your community and the world at large or to give back to society you may also support charities. Honoring the memory of a family member or loved one who has passed on is another popular reason to support and donate to charity. Due to the financial crisis, resources have become limited. However, with the many charities and non-profits competing for your money and other resources, it can sometimes be confusing and a hassle to decide on the charities you should support. To help you to successfully and significantly donate to a charity of your choice, here are ten tips that you should consider.

1. Figure Out What You Care About

Decide on the types of charities and causes in which you are interested. You are more likely to follow through on your commitment if the cause is important to you, such as a health problem you or a family member is experiencing.

2. Sort Out Your Finances

Establish a budget for charitable donations and find out the different methods to successfully donate to charity. These may include endowments, non cash giving and charitable annuities.

3. Get Informed

Research the charities and get information about their financial and mission statements and annual reports. Be careful of charities with similar sounding names to avoid scams. Check with the federal and states’ charity registration offices or the Better Business Bureau to find credible charities.

4. Keep A Record

Use check or credit card as payment for your donation rather than cash and remember to get a receipt. If you make non-cash donations, including clothing or furniture to organizations such as Goodwill, make sure to get a receipt.

5. Ensure You Have Documentation For Tax

Maintain a record of donations for tax requirements. For donations less than $250, a credit card statement, canceled check or receipt is required, while a receipt from the charity is required for donations $250 and above.

6. Feel Free To Say No

Avoid being coerced or pressured into supporting a charity if you do not have enough information about the organization. If you are unable to support the charity do not feel guilty or afraid to say no.

7. Be Wary

Be careful of charities and organizations that offer gifts and items or use phony emotional appeals to get donations. Do not feel obligated to send money for unsolicited gifts as this is not legal.

8. Know Where Your Money Is Going

Select or designate how you want your donation to be used if you have concerns about it going to overheads expenses instead of programs. If you donate without any designation, you may ask the charity how much of your donation is applied to programs versus administrative overheads and fundraising.

9. Be Generous

Give cheerfully, generously and wisely once you have selected a charity you want to support.

10. Always Remember Tax

Not all charitable organizations qualify for contributions that are tax deductible. Know the difference between “tax exempt” and “tax deductible” since only “tax deductible” contributions may be deducted on your federal tax returns. Many charities are in dire need of financial help to carry out their mission. Donating to charity is usually an honorable, rewarding and important philanthropic mind-set that often results in a win-win for the donor and the charity. If you want to be successful in donating to a charity of your choice, understanding and using the helpful tips is a good place to start.


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