As December quickly gives way to the New Year, we’re often asked about the best donation programs to support and ways to help Charities in a needy time. At
1. Estimate your Income and Tax Liability
Take time to understand your tax liability for the year. Did your unearned income increase? Did you sell any appreciated assets? The answers to these questions may determine how much you want to give by December 31st.
2. Get in Touch with your Advisor
After the new year, your CPA, attorney, or advisor will be neck deep in tax filings and returns. Now, is a great time to have a consultation to discuss contributions, retirement, giving options, and understand the impacts on your taxes.
3. Check that Portfolio
Consider assets that appreciated in the last year. If you sell or have sold assets you may incur capital gains on the appreciation. But, gifts of stock reduce the tax liability for the donor. These gifts can be deductible up to 30% of the adjusted gross income and may carry the deduction forward for up to an additional five years.
4. Beware of Fraudsters
Generosity this time of year also breeds a lot of deceptive practices and schemes. Be on the lookout for contribution programs that promise high yields or offer other incentives (like a trip).
5. Know your charity
Do you see the work of the organization in your community? Is the charity a qualified 501(c)(3)? Be careful about who you offer your hard earned money or assets to. Sometimes, they operate as sound-alike organizations.
6. Don’t wait till the last minute
Give early and make sure to have your donations complete or the interest transferred by December 31st.
7. Consider alternative types of Donations
It doesn’t have to be cash or stocks. Donations of property can make a big difference this season. More than coats and housewares, Car Donations make a huge difference this time of year. Roughly 35% of car donation volume comes in between October 1st and Dec 31st. If you have a Car, Truck, SUV or Van that you want to donate to a worthy charity, consider the donation program of Carsforcharity.net. We have the best run program in the Country!
8. Ask about multipliers
Often times at end of the year, charities may have challenge grants that can double your donation amount or employee matching programs that can make your single car donation into the value of a two-car contribution.
9. If you can invest time with your dollars, Do that.
Not only in the spirit of the season is this a great time to volunteer, but building a relationship with the charities you support lets you know the money is being used wisely.
10. ASK the Question
Don’t be afraid to pursue all the answers! Where is the money spent? How much goes to fundraising costs? Can I find your financial statements online?
Now more than ever, charitable donation organizations need to be ready to compete for your dollars. Donors should choose the programs that best fit their interests and passions. But, you should be sure that they are ready to make your donation count. Ask your friends not only where they donate, but where they spend their time.
It’s okay to have charities compete for even tiny donations! Don’t get caught up in splashy ads or promises. Resist organizations with ‘kids’ in the name! But no history of helping kids in the community. And remember it might be trash to you, but could still make a huge difference in someone’s life! A single car donation can be the difference between hope and happiness!
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