Give Back on Giving Tuesday
With the holiday season about to be in full swing, the giving spirit is likely to follow. If you want to donate money before the year ends, ensure you have knowledge of its destination and purpose.
People give more to charity in November and December, especially on Giving Tuesday (November 29) or during fundraising campaigns. People do this to get a tax deduction by itemizing their deductions and donating before December 31.
In 2022, people gave $326.87 billion to nonprofits, which was 67% of all charitable donations, as per GivingUSA's report.
Charitable giving is a wonderful way to make a difference in the world. By following these tips, you can help ensure that your donations are going to good use and making a real impact.
Avoid High Pressure Tactics
Be wary of charities that use high-pressure tactics, such as deadlines, to solicit donations. These tactics can pressure you to donate without giving you the chance to research the charity. This means you cannot ensure that your donation will be used well.
Laurie Styron from CharityWatch suggests thinking about what causes are important to you before donating. Instead of reacting quickly to pressure, it is advisable to choose charities that align with your beliefs. Additionally, it is important to conduct thorough research to ensure that your donation will have a meaningful impact.
Remember, true charity organizations prioritize transparency and ethical fundraising practices. If a charity employs high-pressure tactics, it's a red flag that their intentions may not be aligned with your philanthropic goals.
Vet the Charity
Before donating to any charitable organization, it's crucial to conduct thorough research to ensure your money is used effectively. Numerous resources can help you evaluate charities and make informed decisions.
Reputable websites like CharityWatch, GuideStar, and CharityNavigator provide comprehensive analyses and ratings of various charities. These platforms delve into the organization's financial transparency, program effectiveness, and overall accountability.
The Better Business Bureau's Wise Giving Alliance offers valuable insights through its extensive database of charitable organizations. They assess charities based on their adherence to ethical fundraising practices, transparency, and accountability to donors.
Additionally, most non-profit organizations, excluding churches, are required to file an annual Form 990 with the IRS. This document provides detailed information about the organization's finances, including revenue sources, expenses, and program spending. To learn more about how the charity uses its money, you can check the Form 990 on the IRS website.
Furthermore, many non-profit organizations publish annual reports on their websites. These reports often include detailed information about the organization's mission, programs, and accomplishments. This information can provide valuable insights into the organization's effectiveness and how your donation will be used.
Use resources and research to make informed decisions about your charitable giving. Ensure your contributions have a genuine impact on causes you care about.
Give Directly to the Non Profit
Beware of individuals or organizations that solicit donations on behalf of a charity but collect the funds themselves. It's important to check if the money will really go to the charity it's meant for.
Even if someone or a group donates money, they may deduct a significant amount for administrative or processing fees. This can significantly reduce the amount that reaches the charity and impacts the cause you intend to support.
Laurie Styron, executive director of CharityWatch, recommends making donations directly to the charity if their programs resonate with you. This ensures that your entire contribution directly supports the charity's initiatives and makes a more substantial impact.
Donate directly to have a bigger impact and make sure your contributions matter in the areas you care about.
Beware of Scams
Scam artists often exploit the familiarity of well-known charities by slightly altering their names to mislead potential donors. They might add "foundation" or "American" to a charity's name to make it seem real. This tactic is intended to capitalize on the trust and recognition associated with the original charity.
Laurie Styron emphasizes the importance of conducting thorough research before making any donations. She suggests that donors carefully check the charity's name to make sure it matches the organization they want to help.
By being vigilant and exercising due diligence, donors can safeguard their contributions and ensure they reach the intended recipients.
Bottom Line
As the holidays come closer and people feel more generous, it's important to make smart choices about donating. By following these rules, you can make sure that your kindness has a significant effect on the causes you care about. Be careful, research, avoid scams, and donate to trusted charities to make a big difference with your giving.
Sources:
https://www.cnbc.com/2022/11/17/giving-tuesday-how-to-vet-a-charity-before-making-donation.html
https://www.fidelitycharitable.org/articles/5-tips-to-maximize-your-impact-for-giving-tuesday.html
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