As the holiday season approaches, appeals for your charitable donations will appear in your inbox, mailbox, and voicemail. If you are in a position to give, don’t just throw out money to whatever causes tug at your heartstrings; do your homework, determine your giving budget, and put a strategy in place.
1. Pick Your Charity or Cause
Select your causes ahead of time to give yourself time to do research and to not be tempted by all the requests for donations coming your way.
- Sort through solicitations you have received in the mail, from your children’s school, or at your workplace to narrow your scope.
- Involve your entire family in finding a cause that means something to all of you, and use this opportunity to talk to your kids about giving back to others.
- If a national charitable organization appeals to your family, look for a local chapter so your family can see the direct impact of its donation in your neighborhood.
- Consider choosing a child-related charity, which your children might better relate to.
2. Prescreen Your Charity
Go online and investigate your charity, even if you’ve chosen a charity you have donated to before. Use websites such charitynavigator.org or guidestar.org to find annual reports, brochures, mission statements, and information on the charity’s CEO. Find out how the organization elicits, distributes, and spends donations, and be sure it has been granted tax-exempt status under section 501(c)(3) of the Internal Revenue Code.
3. Decide How Much You Can Donate
Look at your holiday budget to determine how much you can contribute. If you cannot afford to donate money, find another way to help. Consider donating your time; vehicle; clothing or other household goods; or talents such as baking, fundraising, or computer skills.
4. Put on Your Blinders
Once you commit to your charity, ignore additional requests.
- If someone asks you to donate to another cause, defer to your budget and politely decline knowing that you are making the greatest impact possible for a cause you and your family believe in.
- Register your phone with the National Do Not Call Registry to keep incoming requests for aid to a minimum.
5. Donate Safely
Take the following precautions when making charitable donations:
- Never give bank account, credit card, social security, or other financial information over the phone or through email.
- Beware of soundalike organizations that have names similar to responsible, reputable charities.
- Avoid donating cash. Write out a check to the specific charity, and keep record of your donations so you can deduct them properly come tax time.