subject line: How To Make A Smart Donation
Making a charitable donation has many benefits, it helps make a positive impact in the lives of others, you feel good about giving and it can be tax deductible. Here are few steps to help you with your philanthropic endeavors.
1. Determine a cause you care about: What impact do you want to make? Helping animals, veterans, children, international missions, etc.
2. Do your research: Before deciding to give to an organization do some research on where your money goes.
What percentage of their budget is spent on administrative costs?
Charitynavigator.org is a great website full of information on charities and their transparency with their funds. Guidestar.org is another website that provides you with information on charities and has a rating system to help you understand which charities are the most transparent with their funds.
How effective is the organization?
The organization may be supporting a cause you care about but are they actually making a difference? Look at their statistics- depending on the cause it’s not all about the numbers it may be more about their success rate.
Are they tax deductible?
To determine if the organization you would like to give to is tax deductible visit the IRS website. There is a tool on their site called Exempt Organizations Select Check. This is a search tool that enables you to search for an organization and review information about their federal tax status and filings. Here is the direct link to this tool: www.irs.gov/charities-non-profits/exempt-organizations-select-check.
(This article is not intended to provide you with tax advice. Consult with your CPA for any questions regarding your tax deductions and charitable giving).