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December
14, 2006
Holiday Charity
Begins at Home
The holiday season
is more than just a time for gift-giving and elaborate meals. It’s
also a time to make charitable contributions to help others who are less
fortunate.
“If you have
never had a family meeting, consider having one to determine which charities
you wish to support,” says Debra Pankow, North Dakota State University
Extension Service family economics specialist. “Also, be sure to
get input from your teens.”
Some tips for holiday
giving:
- Ask for written
information. A legitimate charity will give you information outlining
its mission, how your donation will be distributed and proof that your
contribution is tax deductible.
- Ask for identification.
Many states require paid fundraisers to identify themselves as such
and to name the charity for which they’re soliciting.
- Watch out for
similar sounding names. Some phony charities use names that sound or
look like those of respected, legitimate organizations.
- Call the charity.
Find out if the organization is aware of the solicitation and has authorized
the use of its name. If not, you may be dealing with a sham solicitor.
- Make your donation
go further. Ideally, at least 75 percent of your donation should go
directly to programs, not staff salaries and expenses. The Web site
www.charitynavigator.org
rates more than 5,000 of the largest charities according to revenue
spent on programs and services, as well as financial strength. While
it doesn’t list smaller organizations, you can get a good sense
of the kinds of questions to ask them.
- Be skeptical if
someone thanks you for a pledge you don’t remember making. Check
your records if you have doubts about a pledge you supposedly made.
- Refuse high-pressure
appeals. Legitimate charities won’t push you to give on the spot.
- Be cautious of
charities that offer to send a courier for your donation.
- Consider the costs.
When buying merchandise or receiving free goods for giving, remember
that these items are paid for through your contribution. That means
less of your donation may go to the charity.
- Be wary of guaranteed
sweepstakes winnings in exchange for your contribution. You never have
to donate to be eligible to win.
- Don’t send
cash. For security and tax record purposes, pay by check. Write the
official name of the charity on your check.
- Remember tax deductions.
If you itemize deductions on your federal income taxes, you can deduct
money and property contributions to qualified tax-exempt organizations,
within IRS guidelines. For complete details, go to www.irs.gov/pub/irs-pdf/p526.pdf.
A new federal
law, The Pension Protection Act of 2006, changed several charitable
contribution rules. For example, beginning in 2007, you must obtain
a receipt for all charitable contributions, including small cash donations
such as the church collection plate. Also, only donated items in good
condition will be deductible.
- Don’t overlook
airline miles. Many charities accept frequent flier miles on behalf
of their beneficiaries. For example, the Make a Wish Foundation estimates
it will need more than a billion miles to grant each child’s travel
wishes this year (www.wish.org/help/donate/non_cash_gifts/airline_miles).
Look on your favorite airline’s Web site for links to nonprofit
organizations that accept their miles.
- Company-matching
contributions. Some employers will match a portion of your donations
to IRS-approved nonprofit organizations or educational institutions.
This is a great way to get more out of your charitable buck. Check with
your human resources department to see if this is offered at your company.
- Donate your time.
Last year, Americans gave a record $260 billion in charitable contributions.
But millions of people also contributed precious personal time by cleaning
parks, staffing homeless shelters, reading to underprivileged children
and countless other causes. Although your time isn’t tax-deductible,
mileage getting to and from where you volunteer can be. Besides, contributing
your time and effort can be much more rewarding than just writing a
check.
- Involve your family.
There’s an old saying that charity begins at home. It’s
never too early to teach your children the value of generosity. Maybe
that means asking them to donate gently used toys to a children’s
hospital or mow the lawn for an elderly neighbor.
Donating your hard-earned
money and valuable time is one of the best holiday gifts you can give
to your community and yourself.
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Source: Debra
Pankow, (701) 231-8593, debra.pankow@ndsu.edu
Editor: Rich Mattern, (701) 231-6136, richard.mattern@ndsu.edu
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