How to Be a Savvy Charitable Giver

For many people, it is important to take time to give to those who are in need.  Donating to your favorite cause can be fulfilling, but it’s also important to ensure that your gift reaches the intended source. Follow these tips to be a savvy charitable giver:

Give To an Established Charity

Unfortunately, there are fraudulent charities that will take advantage of your goodwill, especially in the aftermath of a disaster.  A legitimate charity will provide you with information about their mission, how your donation will be used and proof that your contribution is tax deductible.

To help find a charity with a proven track record for providing aid, if possible, contact a local branch of the charity you know to be reputable such as your local American Red Cross or United Way office. When this is not possible or if you are looking for organizations with other missions, we suggest visiting a reputable charity database online such as Charity Navigator. You can search their database to connect with organizations and causes you care about, review their missions, financial conditions, ratings, and more. Another reliable source may be your church or other local social service agencies that often have networks or partnerships that can help you engage with trusted organizations.  When you find one or more that you want to support, be sure to take time to learn how they will accept, process, and distribute your donation, and don't forget to request receipts for tax-purposes when needed.  

Designate Your Gift

Some charities allow you to specify exactly where your gift is headed, either for a certain purpose, for example, to purchase school supplies, or even to a select geographic area in need of relief.  By designating or earmarking your gift, you control where your donation goes and whom it helps.

A Proactive Giver is a Smart Giver

Try not to give on an impulse or to the first organization that comes along.  Take time to identify the causes important to you first, and then contact the charitable organizations that support your passion. Find out their missions and what type of aid and programs they offer.  It’s most beneficial to work with charities that have targeted outcomes for their giving.

Benefits to You

A donor's primary motivation may be altruism, but there are also often considerable tax benefits for those who give. A donation to a qualified organization may entitle you to a charitable contribution deduction.  However, remember that a contribution to a qualified charity is deductible only in the year in which it is paid, and all charities do not qualify for a charitable contribution deduction.  Always ask for a receipt and be sure to save them for tax time.

Consider Giving Your Time & Talents

Four out of five charities report using volunteers.  Volunteers are the foundation of most charitable organizations. If you can't afford to donate money, consider donating your time and expertise.  Common volunteer duties include: stuffing envelopes, answering phones, feeding animals, tutoring, building homes, serving as a program or event attendant, counseling those in crisis, selling tickets, or even logging and sorting donations.