How to Give Money Away Wisely

The honorable act of making a charitable donation should not be done on an impulse, but instead executed after carefully assessing the organization to which you are giving money. Statistics show that more than 80 percent of charitable donations come from individuals like you. Here are some useful tips for an informed decision before giving your money to a charitable organization.

Instructions

Difficulty: Moderately Easy

1. Check the organization's authenticity with the charity regulation office, which often falls under the state attorney general's office. Some organizations may be exempted from appearing on the register. In such cases, contact the organization directly and request their annual reports and IRS Form 990.
2. Ask questions about the identification of the solicitor, projects of the organization, what percentage of the donation goes to overhead and tax deductions. Proceed with the donation only if you feel comfortable.
3. Verify if the contributions are tax deductible even if the organization claims to have tax exemption. Tax exemption is not the same as tax deductible. Tax exemption refers to the company not being taxed and tax deductible refers to the individual being able to deduct the money from their taxes.
4. Write checks for donation instead of using cash. Make the check payable to the organization and not to any particular individual.
5. Keep records of your contributions such as receipts, bank statements, credit card statements and canceled checks for tax purposes.
6. Donate to individuals who collect money in person after verifying their badges and making sure that the container where you deposit your money is secure and labeled.

Tips & Warnings

• Do not feel guilty about saying no to any organization if you are not convinced about their authenticity.
• Do not feel threatened by the pressure tactics of fundraisers. Report such practices to the local Better Business Bureau.