How to Make Charitable Donations that Make a Difference

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By Wasatch
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In tight economic times it is more important than ever to make sure your charitable donations go where you want them to.

Difficulty: Moderately Easy

Instructions

Step 1

If you are making donations to charity large or small you should make sure you are donating in a way that will make a difference in the world. Chose a cause then research who actually makes a difference in a way that you want to. Some groups are great, others simply skim most the money for overhead and salaries. Check them out.
Step 2

Check the Better Business Bureau for any complaints. If you are donating a large amount or a small amount but plan to deduct it from your income taxes, make sure the charity is registered as a non profit organization and is compliant with the IRS regulations to be tax deductible. If you are concerned about how much will go to overhead vs to the cause ask to see a IRS form 990. This shows the charities income and expenses. If too much is going to overhead look elsewhere. They are required by law to show it to you immediately if you are asking in person or within 30 days if you send a written request. They should show you the last 3 filings they have made. For tax purposes it is better to donate to one or two favorite charities. That way it is easy to keep track of the amounts donated so you have all information ready easily when you do your taxes and it is less likely to cause an audit.
Step 3

Donate where the most money gets to the end user. The phone calls from the police and local fireman's organizations do give money to a worthy cause, but often expenses and salaries to collect the funds are 80% to 90%. Only 10 cents or so of a dollar get to the people you think you are trying to help. The best I know of are the Catholic Relief Agency, The Red Cross, and The Church of Jesus Christ of Latter Day Saint (The Mormons) Humanitarian Aid fund. These organizations often work together with lots of volunteer time and have little overhead. They get a large amount directly where it is needed and help with disaster and hunger worldwide. They are often on the ground in an emergency with relief food and shelter before any government response.
Step 4

If money is tight there are many great causes like adult literacy or feeding people at a shelter that need people to help every day. You can see your contribution of time actually change lives and give you a feeling of gratitude for what you have as well.