Here are a few suggestions offering some new ways to go about giving to charity and some tips on how to donate effectively:
- Take the time to think about what causes are most important to you. Then concentrate your giving on those issues. Otherwise, you run the risk of sending a little money this way and a little money that way, and never really being able to keep up with all the activities you're supporting.
- Get really involved with the organization you're most interested in. You might serve on its board or volunteer some time working in its office or in the field. If you have some special expertise, such as public relations, marketing, or fundraising, you might offer those services. This is a good way to learn more about the issues, too.
- If you have children, involve them in giving, beginning when they're young. Share with them what you're donating and why, and what your gift will do. Encourage them to develop causes that they care about and that they donate to, as well.
- If you're not yet blessed with riches (and even if you are), consider all the nonmonetary gifts you could give. You might volunteer, for example. Or donate things such as used clothing, computers, and cars to charities that can use them. (If you do, make sure to get a receipt for tax purposes.)
- Don't give money to some organization that cold-calls you. Always investigate them first. There are many hucksters out there calling people and wheedling donations out of them. Some shifty outfits beg for donations of cars, too.
- If you end up donating your car to an enterprise that isn't formally tax-exempt (qualifying under IRS section 501(c)(3)), your deduction won't be valid. So look into how legitimate a charity is before giving away your clunker. The rules regarding the donation of vehicles have changed recently -- learn the latest requirements in this Roy Lewis article.
- If you donate $250 or more to any charity, you'll need to receive and keep a receipt for tax purposes.
- Keep records of your donations. If you fail to do this, you might end up at year end totaling donations in your check register and realizing that you gave to some organizations much more often than you thought you did.
- Realize that "tax-exempt" is not the same as "tax-deductible." A tax-exempt organization doesn't have to pay taxes. But, donations to it may still not be tax-deductible. You can ask to see a copy of a charity's tax-exemption paperwork and some proof that deductions are tax-deductible.
Also, to meet some fascinating charities, drop by our annual Foolanthropy charity drive, where we're raising money together for some very worthwhile causes.
