With millions of non-profit organizations and limited funds available to address society’s needs, competition for donations can be intense. Poor economic conditions can result in increased demand for charities’ services at a time when their resources are shrinking and they’re asked to do more will less.
All charitable organizations must spend money to meet overhead costs, including costs associated with soliciting donations, but not all charities are committed to keeping overhead costs reasonable. With that said, below are two things to remember when making donations to charity.
Know Your Charity
Charities have an obligation to provide detailed information to interested donors. Never should you give to a charity you know nothing about. Instead, request for written literature and a copy of the charity’s latest annual report. This should include a list of the board of directors, a mission statement and the most recent available audited financial statements with accompanying notes.
If a charity is unwilling to provide you with the needed information, you may want to think twice about giving to it. That’s especially the case when you want to donate online to charities. Honest charities typically encourage your interest and respond to your questions.
Keep Records of Your Donations
Do not give cash. Moreover, never give your credit card number to a telephone solicitor or site that you know nothing about. Be sure to obtain a receipt or printed copy of your donation so you will have a record for tax purposes when you donate online to charities.
For tax purposes, it always pays off to keep a record of all your contributions of any amount. If making contributions under $250, records may be in the form of a bank record, cancelled check, or written communication from the charity. The written communication may be in the form of receipt or letter that must contain the charity’s name and the amount and date of the contribution.
Final Thoughts
With charity donations, you should never rush over your decision. You want to be sure that your donations serve the intended purpose, and it’s best done when you do the right things. Keep records of your donations, don’t respond to pressure, give directly, and consider giving generously.
You should also understand what makes charitable organizations to stand the chance of enjoying tax saving benefits once you donate online to charities. So what is keeping you from making a donation to charity?
