Welcome to Charity Tips

Ignore your Heart, Sometimes

Unfortunately, many charity scams focus on events or subjects that pull at your heart strings, such as disasters, issues of patriotism, children, animals or other vulnerable groups. If you are not familiar with the organization or the cause, or if the appeal seems overtly emotional or uses statistics that seem unreal to you, take the time to get more information. Do some research on the cause, and ask the organization for documentation.

In many cases, these appeals will be legitimate and you will choose to make the donation and help the cause. In other cases, you may find that the appeal was not legitimate, and you can focus your energies on finding an organization that will help the cause. At the very least, be skeptical of extremely emotional appeals just so that you are sure that you are making a clear choice to give; no charity should be the result of emotional trickery!

Corporate Philanthropy

In the world of business, it is increasingly more challenging to do business in the community and not be a part of it. Good corporate citizenship includes giving business-sponsored donations. Corporate philanthropy helps companies increase their corporate profile and community goodwill, and corporations also benefit from the reinforcement of the common good that philanthropy fosters.

Funding from corporations is often in the form of larger gifts or grants, and can make a significant and positive impact on nonprofits' ability to advance their mission effectively. While many companies have a group dedicated to deciding to which causes to give, and how much, employees also have the opportunity to recommend charitable causes. Urge your company to get involved!

Let Your Fingers do the Walking

If you receive a solicitation from a third party, such as a volunteer or a professional fundraiser who says he or she is calling on behalf of an organization, call the charity to find out if it is aware of the solicitation and has authorized the use of its name.

If a telemarketer claims that the charity will support local organizations, call the local groups to verify. If the answer to either of these questions is "no," this should raise a red flag.

Smart Giving: Pool Your Resources

Donating to charity is not just for the lucky segment of the population with enough money that they have a financial incentive to give it away. Every penny that you give makes a difference to the organization to which you give it. Nevertheless, you might wish you could give a larger gift than you can afford to your charity of choice. Guess what—others may be in exactly the same situation!

Consider organizing a giving group: each member of the group gives what he or she can comfortably give. Total up the funds, and then, as a group, decide which charity or charities you would like to donate the amount. This arrangement could take other forms, too: you could decide you want to organize a group of people interested in giving to a specific organization, and then collect and total the gifts.

Donation Due Diligence: Get Receipts

It's better to be safe than sorry, and you will need documentation for tax purposes. Ask for the organizations to which you donate for a receipt showing the amount of the contribution and stating that it is tax deductible.

If you received any principal in return for your donation, or if you donated material goods, make sure that the amount that is tax deductible is also provided on the receipt.

Smart Giving: Plan Ahead! Include Donations into Your Budget

Whether you do it at the start of the year or the start of the month, you probably lay out a budget from time to time. As you put aside money for home improvements, vacations, and the unexpected car repair, also include line items for your philanthropic activities. If you know that you give money to your alma mater each year, put that in the budget. If you have a cause that is close to your heart, add that, too.

If you're not sure to which charity you might want to give, or you know that each year brings its share of sad events that require financial relief, just set aside a dollar amount so that you have some cash to send when the time arises.

Smart Giving: Remember That Giving is a Choice

We know it's a good thing to do. We know that there are thousands of worthy causes out there that would really benefit from our gifts. But it's okay to not be able to give to every charity, or to say no sometimes.

Give generously when you can, but if you simply cannot afford to give at a certain time, or if you feel uncomfortable, don't be afraid to say no. If you are put on the spot by a solicitor, feel free to ask for more information and take more time to think before making your decision.

Smart Giving: Avoid Sending Cash

As tempting as it might be to put a $20 bill in the envelope you receive with a solicitation letter, take the time to write a check. Cash gifts are easily lost or stolen and not traceable.

*For security and tax record purposes, it is best to pay by check made payable to the beneficiary. Never make a check payable to a solicitor.

Smart Giving: Know the Facts on Tax

As with anything, there is more to charitable giving and tax deductions than meets the eye. Find out how much of your donation is really tax deductible. Be aware that if you receive a something in exchange for your gift (such as a book, a dinner, or some other 'prize') the amount of your tax deduction is reduced by the fair market value of the premium. For example, if you pay $600 for 2 tickets to the Superbowl (assume face value of $200 each) at a charity auction, you can only receive a tax deduction equal to $200.

*You can always turn down the incentive item if you wish to claim a deduction for the full amount of your gift - ask the receiving organization for more details.

Smart Giving: Shape-Shift Your Gifts

It's not all about writing a check. There can be significant benefits to using alternative forms of giving, such as planned giving (bequests), charitable trusts, gifts in kind, endowments and other creative gift mechanisms.

*Your tax advisor, accountant or attorney can help you make the best plan for you and your family.

Philanthropy: A Definition

Philanthropy involves the donation or granting of money to various worthy charitable causes. It is seen as a way to directly effect change in society independent of government bureaucracy or involvement.

*Philanthropy is a major source of income for artistic, musical, religious, and humanitarian causes.

Include Your Children

After a certain age, children are naturally generous. It is important to nurture this impulse, as it will be the foundation for a lifetime of generosity. Include your children in your donation process, talking with them about the different causes and why it is important to support those causes.

Children notice a lot of the things about the world around them. Ask them who they would like to help and why, and encourage them to consider sharing a portion of their allowance to help those causes. Bring your children to fundraising events—many walks, runs and rides offer children's equivalents, giving them an opportunity to experience a different component of charitable giving.

*Supporting your children's charitable education will not only help lead to a lifetime of caring, giving and happiness, it is a special way for you to bond with your children.

Donation Due Diligence: Get Advice

When considering making a donation, particularly a large one, or one of any size that will put a strain on your own finances, be sure to discuss the donation with a trusted family member or friend, or with a financial advisor, before committing the funds.

Some sophisticated but underhanded organizations can really have their acts together, and an objective perspective can be valuable in identifying the flaws in their pitch.

Donation Due Diligence: The Money Comes Last

It may seem obvious, but if you have any questions about the legitimacy of the organization from which you have received a solicitation, or if you are just not sure yet whether you want to give to a cause, or how much to donate, do not provide any credit card or bank account information to the organization.

Once you have reviewed all information from a charity and have made the decision to donate, then work with the organization to get them the money.

Try Your Charities on for Size

There are almost innumerable worthy charitable causes out there and you probably want to help a good number of them. For reasons of both time and money, however, you may find that you need to narrow down the organizations that you regularly support. You may have already identified your subset, but if you are still evolving your giving strategy, it is a good time to try on various charities for size.

Joining and/or supporting multiple organizations at a lower level for a year or two will give you the opportunity to interact with the organization, receive its newsletters and annual reports, and generally get a sense of how you and the charity get along. When you find the groups that both promote the causes you support and do so in a way that is comfortable for you, you can feel better about committing more of your time, money and advocacy to those causes.

Play the Numbers Game

Many nonprofit organizations are very politically active, promoting legislation that advances and supports their mission. Such organizations use their membership numbers to advocate for their cause and your involvement can help them build their membership base and lobbying power.

If you don't have a huge charitable budget, but you know that you support the mission of one or several organizations, consider becoming a member of those organizations at their lowest level. In most cases, for between $25 and $30 a year, you can pump up their membership numbers, receive information about their efforts, and learn more about the organization. Over time, you might be able to afford a higher level of involvement, and you will have a history and track record on which to base your support.

Smart Giving: Keep Track

To receive tax benefits when you make a donation, you must keep appropriate documentation. For monetary gifts of less than $250, a cashed check or receipt from the charitable organization is usually sufficient proof of contribution.

When donating property, establishing a trust or an annuity, it's time to call in professional advice—talk to your accountant. Also, many charitable organizations will provide you with support for whatever documentation you need for tax purposes.

Smart Giving: Get the Scoop!

You know the drill: the phone rings and it's your alma mater…or the fire department…or the organization that benefited when you sponsored your friend in the marathon last year. The person on the other end of the line wants to know what you'd like to donate this year. It's probably dinner time, but don't hang up just yet - that's a volunteer on the other end of the line, or at least an employee who has dedicated her career to nonprofit work. However, do not be afraid to ask questions!

Ask solicitors names and her relationships with the organization; if you are not familiar with the organization, ask what its mission is and how your donation will be used. Make your donation only when you feel comfortable that your dollars will be supporting an organization you know, believe in and trust.