Tax season is a time to look back on a year of earning and spending and for many, a year of donating to charities. Many of us right now are digging up tax receipts from charitable donations from the past year, and may be vowing to give more or less, depending on your return, perhaps next year.
Whatever the case, make sure you’re giving wisely. Not all charities are what they appear to be, and not all charities use your money in the same way. Some so-called charities piggyback on a popular cause or a contemporary issue but are putting more of their money towards administrative costs than anything actually charitable.
Don’t be wowed by a slick package or a celebrity endorsement ask for the nitty gritty details of the organization. A legitimate charity should be putting well above 60 percent of its earnings towards its services and will be happy to show you how its budget breaks down.
Giving to charities is not realistic for everybody, but if it is realistic for you, it’s a very effective way to contribute to positive change on a scale outside of your personal life. Here are some quick tips to make sure your money is going to good use:
Ask for details. A good charity will have things like a mission, last year’s annual report, and registered charity documentation readily available.
Don’t give in to intimidation. Real charities are just as happy to let you think things over and get back to them don’t feel pressured to give to them just because they have someone standing at your door. And charities giving gifts are probably trying to guilt you into giving them money.
Get a tax receipt. It costs the charity nothing and means they’re recognized and supported by the government.
