10 Giving Tips
Giving and Charities
December 24, 1997

1. What causes really float your boat? Especially at this time of year, you're probably being inundated with requests for those hard-earned dollars. How do you choose who is worthy? If you're like a lot of us, you think it's too complicated and just decide to do nothing. Instead of being frozen from indecision, think about what is most important to you. Did you really love camp when you were a kid? How about sending an underprivileged kid to camp this summer? Does a co-worker have AIDS? How about giving money to medical research in his name?

2. Check out the organization. Ask the organization to send you more information on what they do. How long have they been in business? What is their main mission? Do they seem to be accomplishing their goal? How do they use their money? How much of their money is going for true charitable work? (In order to pass muster with the charity watchdog group National Charities Information Bureau, groups have to devote at least 60% of the money they receive to their mission.)

3. If you're solicited on the phone, ask for written information. Many organizations have similar sounding names. If someone calls you on the phone asking for money, request that they send you more information in the mail instead. If they're unwilling, you know it's a scam. Any reputable organization will gladly do this.

4. Consider other groups that haven't solicited from you. Oftentimes smaller, local groups don't have the money or the manpower to launch massive donation campaigns. Have you heard of any groups in your community that are doing a particularly good job? Why not "think globally and act locally," and give something to them instead?

5. If you can't give a lot, give what you can. Does that little box that you have to check ask for more money than you can afford? Don't worry about it. If you can only afford $5 instead of $25, send that. It will be appreciated more than you know. Then vow to give more when you can afford it.

6. Keep your receipts for your taxes. If part of the reason that you're giving to charities is for the tax deductions, don't forget to save the receipts and keep them in a place where you'll actually find them come April 14. (Yeah, we know that's when you're going to get around to doing them.)

7. Ask if your charity is qualified. There are over one million charities in the United States. But only half of them are "qualified." That means that you can deduct donations to them from your taxes. Ask the organization that you're interested in whether they're qualified. Even if they're not, if you really believe in their cause, write that check anyway. Tax savings isn't the only reason you're doing this.

8. If you get something back (other than that warm feeling)... You write a nice $1,000 check to the American Association for the Prevention of Hangnails (a qualified organization, I might add). In return, they give you two tickets to the final competition of the National Manicurist's PaintOff. Unfortunately for you, you now must deduct the value of the tickets from the amount that you gave to the AAPH when figuring your taxes. Luckily, things like address labels seem to be okay to keep without causing too much of a stir from the IRS.

9. Itemize. Are you the Fool who waits until the very last minute and fills out a 1040EZ form? Well, if you want to take advantage of the tax benefits of contributing to a charity, you're gonna have to buckle down and fill out a regular 1040 form. Don't worry, it's a breeze. And if you need help, you can always check out the Foolish Tax area.

10. If you donate items, don't forget the receipt. If instead of money you give things like sweaters or old records, don't forget to get a receipt, especially if you're giving over $250 worth of goods. If you give over $500 in non-cash charitable contributions you will also have to fill out IRS form 8283 as well as the 1040. (This is cake... don't let this stop you!)

--Trudy Hoyden
(TMF Hoyden)

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