How To Get Started With Charitable Donations?

Answer 1

It is easy to get started making charitable donations. Those wishing to donate can make gifts of time, talents, money or goods to non-profit groups and organizations they wish to support.

In these challenging economic times, it is not hard to find groups in need of assistance. There are many ways for people to give. The most common gift is money. Charities can readily convert gifts of money into established programs. They often solicit donations by phone, mail, and other marketing techniques.

When selecting charities to donate to, it is important to consider a few items. Set a budget. Many people have a set donation budget. Some base it on a percentage of income. Others use different formulas. It is important to set an affordable budget and then determine what charities will benefit from that budget. It is a mistake to let emotions rule the financial decisions. There are many worthy charities but limited financial resources to finance them all. One can set a budget for the year, or one can choose a charity of the month and donate to several charities over the course of the year, utilizing the monthly charity budget. As long as those donations stay in line with the budget, either choice is appropriate.

Research is important. Many charities do worthy and important work and are financially responsible. Unfortunately, some charities are less efficient in their use of money, and some are blatant frauds. Only careful research and follow up can determine if the donated funds are used appropriately.

Never assume donations are tax deductable. While most groups that accept donations are registered charities with the IRS and have the appropriate paperwork that makes donations tax deductable, not all groups that need money are legally eligible to accept tax deductable donations. People are free to donate to those groups. Those donations are just not deductible after the fact. Secondly, not everything given to a charity is always a gift. When one makes a donation and receives an item in return, it can change the status of the deduction. Check with a tax preparer to be sure.

Donating time, talent, and financial wealth are all valuable ways to get started with charitable donations.