The holidays are a season of giving. Whether giving gifts or donating money or time, this is how we express our gratitude both for and to others. It’s when we make charitable donations to nonprofit organizations that are meaningful to us or give to others by making donations on their behalf. It’s not always as simple as writing a check, however. There may be important financial strategies and tax benefits to consider for maximizing your gifts. It’s also important to be cautious about potential scammers who seek to take advantage of generous individuals especially at this time of year. Here are some tips for choosing your charities:
Donate locally.
When considering charities, look first at local nonprofit agencies and organizations. Not only does this have a direct impact in your community, but it also allows you to see exactly how your gifts are used. Here in the Golden Isles, we have more than 100 active charitable organizations, as well as a community foundation that can assist in helping you find the appropriate place for your donations. Food banks, memory care services, educational support, animal rescue, support for families and special needs children are just a handful of the causes you can support in our community. Choose a cause important to you or the individual for whom you’ll be making the gift so you’ll feel more of a vested interest in the organization.
Do your research.
Always ensure that your charities are legitimate by researching the organization. Resources like Charity Navigator and the IRS Tax Exempt Organization Search are a good place to start, but you can always turn to Google and social media sites for information, updates on their activities, and reviews. Being cautious will help you avoid fraud. For tax purposes, the IRS not only requires a paper trail to document charitable gift deductions, but that the donee is properly established as a recognized charity.
See how they spend.
Once you’re sure you’re giving to a legitimate organization whether on a local or global level, it’s important to learn more about where exactly your dollars go. You should be able to do a search for spending for any 501(c)(3). You want to ensure that money donated is being used effectively for the charitable mission, not on excessive or extravagant fees or salaries for staff and administration.
Maximize the benefits of your gifts.
Talk to your financial advisor or accountant about taking advantage of qualified charitable distributions for tax benefits. This is especially important for retirees over 70 years old. If you’re still employed in the corporate world, see if there are any corporate matching programs that will double your gift.
Determine your donation level.
After you’ve done your research, chosen your charity, and are now ready to make your donation you’ll want to determine how involved with the charitable organization you’d like to be. While you can simply make a one-time donation online, you may choose to become more engaged with the nonprofit’s mission by talking to a representative of the organization about how you can give back and further their cause. This may pave the way for you to volunteer, act as a sponsor for future events, or build the relationship by becoming a regular donor. Now – go do some good!
