Wednesday 21 August 2013

5 Lessons for Charity Donations

Investigate
Payment and receipts
Tax deductions
Appearance
Contact
Investigate
With today's resources it is only a click away to find information on nearly any kind of organization. Look into local charity registrations and check with the local BBB to see if there has ever been any complaints. Some companies may have their own extensive sites, but the BBB will provide unbiased information from people who have provided their own personal feedback as well as time in business and other legal declarations. Google is a common way for finding basic information on most charities.
Payments and receipts
While giving a couple dollars shouldn't be cause for alarm, never give large sums of cash. Buying candy from a Girl Scout is different than donating $500.00 to the Red Cross. Use checks written to the name of the charity and not the collector. Be wary of giving your credit card information to any company you are unsure of. Always get a receipt. Records are essential for tax time.
Tax deductions
Tax exempt does not mean tax deductible. There are many more companies that claim tax exempt, but are not considered tax deductible. Personal time devoted to a charitable cause is not tax deductible, but the expenses associated with performing those activities, such as transportation costs, are considered a tax deduction. Check with the IRAS for more information related to the organizations that are acceptable tax deductions.
Appearance
Don't be fooled by appearances. Always look into the legitimacy of every charity. They want to be found. A charity can wait a few days while you gather additional info on their organization. Avoid mailers that demand payments of any kind. Some may include gifts and demand a charitable donation in return. These involuntary payments are in no way obligatory, regardless of the wording. Any email that looks suspicious should be treated as suspicious. Reputable organizations will have no problem with proving their authenticity.
Contact
Every reputable organization is going to have more than one form of contact. Email, phone and mail should be available. Many of the larger charities will even have local offices that you can walk directly into.
Conclusion
Even though the y may lift the spirit and even become a factor when taxes are due, the true essence of a charity is the cause it supports. There are more organizations available than can possibly be listed here. Thinking about expectations and donating to the right one can be a rewarding experience. Before making a decision, though, utilize the resources available to determine the best route to go. Legitimate companies are more than willing to cooperate.
Ray recently helped raised $600.00 for Special Olympics charity recently and learned valuable lessons in the process. Find a charity that fits the needs and expectations that you should already have in mind. Remember that even if it isn't tax deductible, it doesn't mean it isn't for a good cause.


No comments:

Post a Comment