Golden Opportunities

Charities are desperately seeking your help. There are more needs, and less money, than ever. When you give of your time or money, you want to make sure you’re really helping. Here to give us helpful hints on how to give wisely is the wise Jim Lineweaver, founder of Lineweaver Financial Group.

Question: Ever-rising costs, loss of government funding, and other factors are making charities ask for more contributions from more donor, aren’t they?

Answer: Yes. And Americans give a lot to charity. They donated an estimated $240 billion in 2003.
Some give because they enjoy it, some feel bad if they don’t, and some just always have. Donations can also give back—if you itemize at tax time, the deduction you get for donating to charities can lower the after-tax cost of your gift considerably.

Question: Today, you’ve made a list of some tips on charitable giving that can help you give and get back. First on your list is Be sure about your target charities.

Answer: The last thing you want to do is give to any random charity. Learn about the organization. It will make it easier to give if you know more about their achievements and goals. It could benefit your life or the life of someone you love. 
Don’t be fooled by names that look impressive or that closely resemble the name of a well-known charity. Check out the organization with the local charity registration office and with the Better Business Bureau.
For the charities you plan to give regular gifts to, request a copy of their latest annual report, a list of board members and the group’s latest financial statements. If you don’t have time to review the statements in detail, at least compare the charity’s expenses to its income. And if something looks confusing, ask your financial advisor.

Question: Next is Do not give cash.

Answer: Always make contributions by check and make your check payable to the charity, not to the individual collecting the donation. This will ensure that the money goes directly to the organization and not to someone who may be scamming you or the charity.

Question: Third you suggest Keep a record of your donations.

Answer: Hold on to all receipts, canceled checks and bank statements so documentation will be easier during tax time.
Although the value of your time as a volunteer is not deductible, out-of-pocket expenses) including transportation costs) directly related to your volunteer service to a charity are deductible.

Question: Next, Language is an important topic.

Answer: For example, cash contributions do not simply mean “cash.” Any direct financial support to a charity is considered a “cash contribution,” regardless of your method of payment.

Question: Finally, Tax exempt doesn’t always mean tax deductible.

Answer: “Tax exempt” simply means the organization does not have to pay taxes. “Tax deductible” means the donor can deduct contributions to the organization on his or her federal income tax return.
While the IRS defines more than twenty different categories of tax exempt organizations, contributions to groups in only a few of these categories are tax deductible. Talk to your financial advisor to make sure the one you have donated to is.

Charities need your help. And Uncle Sam may offer an incentive, by allowing a tax deduction. There are lots of interesting ways to contribute to charity, while boosting your tax benefits, through things like charitable trusts and annuities. Jim will be back in a couple of weeks to tell us about a unique opportunity to do good for others, while doing well yourself.