With
more than 1.5 million tax-exempted organizations in the US, finding the right
one might be a challenge. So, once you choose which cause to donate for, here
are a few insights that you may need to look into before signing in for a
meaningful donation:
- Budget for giving: To be wise donor, entail a proper
plan. If you commit to a charity, then ensure a room for it in your
finances.
- Be an informed giver: Wise giving is about knowing what
charitable organization does with your money and is worth it or not? So,
ask openly when asked to give. Look for things like the name of the
solicitor and their relationship with the organization, what proportion of
your gift will be used for overhead, any specific project the money will
go for, and other related information. Give only when you are sure that
your money will go for support to an organization or cause you strongly
believe in.
- Keep the records: For gifts less than $250, a
cancelled check or credit card statement is sufficient for IRS
requirements. For more significant gifts, you’ll need a properly worded
receipt from the organization as a confirmation of your tax-deductible
contribution. The e-mail confirmation received for your gift also meets
IRS requirements.
- Ask how much fund is tax-deductible: If you get a premium in exchange
for your gift, e.g., a book or a dinner, the amount of tax deduction is
reduced by the fair market value of the premium. You can turn away the
incentive item to claim a deduction for the full amount.
- Enquire about matching gifts: Be sure to ask the organization of
how a matching gift can help your gift go even further.
- You can keep your gift confidential: If you wish to remain anonymous
contributor, let the organization know. The charitable organization will
honour your request.
- Consider alternative forms of giving: Don’t overlook benefits from
charitable gift annuities, bequests, gifts in kind, endowments, etc. Take
advice from your attorney to have the best plan.
- Volunteer: Apart from financial support,
consider giving time and skills. This way, you can make contacts, hone
skills, and learn more about the charitable cause to which you’re
committing your time and money.
- Protect your right to say no: Donate generously, but if you feel
unsure & uncomfortable, don’t hesitate to say no. You can also ask for
detailed information and take time to think before making decisions.
- Be a proactive giver: Plan a wise giving strategy and
contact organizations to discuss how you can effectively use the charitable donation gifts can help and make a difference in
the community.
