To date there are more than 1.5 million non-profit organizations helping people and supporting causes. There are thousands more established every year.
Studies have shown that people give or donate to charities because, simply, it gives them a good feeling. Each person has their own reason for giving. For some, the draw is the tax incentives (check with the IRS or your accountant for more information about these opportunities). While for others, it’s for personal reasons.
In order to qualify for any applicable tax deductions you must donate to a legitimate organization or charity. Legitimate charities will have literature about their organization readily available to potential donors and it should include financial reports. Financial reports should include a breakdown of how much of the money donated is going toward operating expenses and how much of the money donated is going toward the charity’s particular cause.
Make sure the charity is non-profit (not for profit). This means that the organization has to submit an IRS Form 990. Ask the organization to provide you with a copy of this form. If the charity is legitimate they should not have a problem honoring this request.
Contact the Better Business Bureau (BBB) by phone or check out your charity selection at www.bbb.org; select “Find a Business or Charity” tab. The BBB will often provide a rating on national charities and provides information and/or complaints lodged against the charity. If you are interested in donating to a local charity make sure to check with your friends, neighbors, your church or people that you trust that can provide you with information about the charity before you make a donation.
Make a difference in someone’s life; donate to a charity or become a volunteer. If you need further assistance, please do not hesitate to email me at sherry@sherrysvilla.com.
