During
the holidays, giving to charities is often something on the forefront of many’s
minds. For those who are not as familiar with the process or are looking for a
new charity to donate to this year, it can be an overwhelming process to begin.
From
donating time to donating money to donating goods, there is a wide variety of
ways to be philanthropic throughout the holiday season and the rest of the
year. Understanding the process is a bit easier with these tips below:
What
to Donate
First
and foremost, consider what you are looking to donate. Are you interested in
volunteering your own time, such as working at a charitable event or serving at
a community center? Or, you can donate money to a cause. Moreover, with
charitable donations being a tax deduction, many find that donating money is
fiscally responsible. Depending upon your situation, you can donate a one-time
payment or you can break up your donations into smaller amounts you pay
throughout the year.
For
those who are interested in donating physical goods, there are plenty of
charities that accept all sorts of donations. Places like the Salvation Army
and Goodwill accept furniture, clothing, and other household items, all of
which can be considered as a tax deduction. Or, for those who are looking to
donate something more sizable, like a boat, there are often events where you
can donate your boat to a charity auction.
Knowing
ahead of time what you want to donate can help you determine what charity to
donate to.
Choose
a Charity
Secondly, when it comes to donating to charity, it is important to
have a charity or multiple charities in mind. If you are unsure of what
charities are available, start by narrowing down your own interests. Are you
interested in donating to a hospital? To a research center? To a charity
raising awareness for a social or political issue? If you can narrow down your
own interests, you can start to narrow down what charities you are interested
in.
Before
donating to a charity, make sure you have thoroughly checked out the
institution. There are many organizations posing as charities that are in fact
not charitable companies. Conversely, there are plenty of legitimate
organizations that do charitable work, but how the company runs may not
necessarily align with your values. For instance, some charities are
non-profits while others pay their executives copious amounts of money.
While
some organizations do need to use some of the donated proceeds to keep the
charity running, including paying their employees, many financial advisors
suggest staying away from charities that give too much to administrative costs.
In this situation, unfortunately, the money you have donated is not actually benefiting
in the manner you expected.
Create
a Giving Statement
When
it comes to donating to charity, it can be a wise idea to create a personal
giving statement or spreadsheet that details what charities you are donating
to. This statement can be as detailed or vague as needed, but keeping track of
where your money is going can help you stay on top of your giving,
specifically, what and how much you have donated to various charities.
Moreover,
keep the statement as updated and relevant as possible for taxes.
If donating goods, take pictures of what you are donating and keep them with
the donation receipt. For tax purposes, should you ever be audited by the IRS, having the details handy can help
the auditing process move smoothly.
Why
Donate?
Lastly,
donating is a personal choice, and while no one should feel forced to donate,
there are some legitimate reasons to donate to charity. As mentioned above,
donations are tax deductible, which can be a great reason for a business to
donate to charity. Additionally, donating can help to keep you informed about
social or political issues you otherwise would not have had a vested interest
in. Or, if you have an issue that is near and dear to your heart, donating to
that cause or charity can help you feel as if you have some part in helping the
cause.
If
you are interested in making a charitable donation this season, these
guidelines can help get you started.
Image
Source: https://pixabay.com/en/money-coins-donate-moneybox-cash-230265/
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