In continuing with our series on Tips You Must Read Before Donating to Charity we are sharing some final hacks and thoughts on how you donate spend your hard earned dollars. Our feeling is charities should work as hard to earn and responsibly spend their donations as you do. So with that in mind, check out another one of our our charity in Houston bookkeeping tips.
1. Charitable Good vs. Harm
If you’ve done the above step and found a charity that is more concerned with taking in money than giving it out, stay away from it. These types of charities can do more harm than good. They may be more interested in appearing to help victims while ignoring the ones who actually need help.
Downsides to this type of non-profit include creating a class of people who don’t need charity but become dependent on it. Not to mention they may neglect those who truly need charity but aren’t willing to “squeak” as loud to get the grease.
And beware of charities that put animals, plants, and inanimate objects ahead of people. Unless these are most important to you. This doesn’t mean you can’t adopt a pet from a shelter and pay their recommended donation, but it does beg the question. Should you put an animal, tree, or inanimate object before the needs of a neglected person?
2. More Tips on Giving Smart
• Be proactive rather than reactive. Which means don’t wait until you are asked to be charitable or see something advertised to begin giving. Decide how much of your budget you will give to charity, and then choose which charities you would like to donate to.
• Just say “no.” If being solicited in person or over the phone for a charitable contribution, simply tell them that you don’t donate to charities you haven’t researched yourself. Be aware of those who try to sell you the charity on the spot without any evidence of the claims. Legitimate fundraisers will direct you to their web page, Charity Navigator, etc.
• Charities that sound alike are not. For example, if your preferred charity’s name is “Adopt a Child Now,” there are often imitators looking to ride the coattails that will have names such as “Adopt a Kid Now” or “Adopt a Kid in Need Now.” Legitimate charities rarely change names, if ever. If unsure if your preferred charity is the one being solicited, exercise caution over sentiment and delay donations until the identity is confirmed.
• No mail. If you receive a letter or email advertising a charity, do not respond to it, even if it has a recognizable logo or domain name. Scam charities can easily confiscate the logo and domain to make you think they are part of the charity, while the address you mail checks to is not. However, if you have given to a charity, it is not unusual for you to be put on their mailing list and receive notices from them.
• No middlemen. If someone is professing to take your donation and give it to the charity of your choice, tell them it isn’t necessary. You can and should do it yourself, as there is no guarantee your money will go to the charity you have chosen.
• Diversify. It’s not only good advice for an investment portfolio, it is also good advice for those looking to donate. Instead of one charity to constantly give to, chose several. This ensures that at least some of your donations are being used correctly if one of them should ever be accused of misusing their funds.
• Ask around. If you have trusted family or friends who have already researched charities they donate to, ask which they are. This can be a huge time saver. If you know someone in need, ask which charity or charities have been helpful to them and which have not. However, if your contact has not done the above or similar research, take their recommendations with a grain of salt.
• Catholic charity scams. Remember that all religions and missions can be subject to charity scams or ineffective giving. If unsure of the legitimacy of the Catholic charity you would like to give to, look it up on the United States Conference of Bishops, Catholic Charities USA, or your local parish to see if they are legitimate.
• Don’t forget to deduct. Be sure and keep records of all your charitable giving including the names and tax information of non-profits you have donated to. When filing your taxes you can use your checks and receipts to reduce the amount of tax you have to pay. You can even deduct donation of goods such as clothing, food, furniture, and more.
Houston Bookkeeping Services
With an estimated 117 million households and 12.4 million businesses in the United States giving out charitable donations each year, it is crucial these funds go to those in need. Because charity is a vital part of the lives of so many people, it is important to know to whom you are donating to before you spend your time, money, or efforts on an organization that isn’t all it seems.
If your family or business needs help getting the books right, including for charitable giving, contact us.