Charitable Year-End Giving
From Philanthropy Expert LISA DIETLIN
Why does every nonprofit organization contact me at the end of the year? Is this the only time of year that individuals are charitable? How do I make sure my donation can be deducted on my tax return?
Overview: Donors rush to make their contributions before each year ends, but why? Out of all the donations made in this country annually ($290 billion last year), individuals account for 85% of them. During this holiday season it is estimated that 80% of charities receive 50% of their budgets at this time. 44% of individuals say they plan to make a donation during the year end to a charity or two.
How do you decide what entity to give to and to not let guilt drive your philanthropic decisions? But individuals ask how do I avoid feeling guilty when I receive so many solicitations asking for donations at year end?
General Information
• How do I decipher between all the appeals I get via the mail?
• Do I have to give to all the appeals I receive? How do I decide what I should give to?
• What if I cannot give a large donation? Does a $25 donation to each of them really make a difference?
• Is it ok to say "no" to a request for money?
• How do I make sure my donation can be deducted from my tax return?
Benefits to being informed
• You make choices that allow your contribution to affect the change you desire.
• Your giving reflects your intentional expression of your values and passion.
• Get involved with the nonprofit organization to which you donate money; you will automatically be more informed and feel better about your donations!
• Know that you can really make a difference!
• You can be an advocate for your cause because you know the donations go to the right place!
Things to consider before donating
• Determine what you care about/where you want to give
• Review all the appeals you receive
• To avoid the "guilt" factor when you want to say "no" to a request for a donation, you can determine how much you are doing to donate at the year-end time frame and to what causes you are doing to make contributions
• Select organizations; a lot of charities are worthy of support, but it is important for individuals to be clear about where they want their donations to go (i.e., what they want to support)
• Choices have to be made….most individuals cannot give to everything they would like to support financially; choices have to be made so be clear about where you want to affect change…what do you really care about?
• You can check out the charity by visiting the Better Business Bureau Wise Giving Alliance (www.bbb.org/charity), Guidestar (www.guidestar.org) or Charity Navigator (www.charitynavigator.org) or talking to the organization directly
How to donate
• Donating cash is not a good idea for both security reasons and the lack of a tax record
• Check is the preferred method; write the official name of the charity on the check and always ask for a receipt.
• Most charities accept a donation via credit card now. If you do it this way, be sure to keep the receipt. If you donate online, be sure to print the receipt.
• When donating items such as furniture and clothing keep detailed records for donations of things such as clothing and furniture; be sure to get a receipt that is detailed including the date, name of the organization and condition of the goods; the IRS is getting stricter about details
• Donations over $250 need a receipt; call the nonprofit organization and ask for one if you don't automatically receive it by the end of January
• Keep detailed records; tax laws require a record of the transaction
• To claim a deduction for charitable contributions, you need to have a dated receipt such as a cancelled check or a date credit card donation; the receipt needs to show the name of the nonprofit organization and the amount of the contribution
• Last day to make a gift and receive a deduction is December 31st at 11:59 pm; you can use a credit card but the gift must be posted on or before December 31st; donation utilizing a check must have both the check and postmark on the envelope before December 31st; gifts made with securities (i.e., stock) should be given a week to insure processing
• Tax deductions are a popular reason why year-end appeals are so popular; nonprofit organizations realize that in the months of November and December individuals are looking at their taxable income and seeking opportunities to reduce their tax burden
• You can make a donation via email or text but be sure to keep a record of it
Other Information
• Honoring Others: Individuals often make gifs to a charity at this time of year to honor or remember others in their family or circle of friends and still claim it as a tax deduction
