Charity Donations Basics
by: Mansi Gupta
Charity is perhaps the best feature of humanity. It is a perfect
way to support the downtrodden. There are many types of natural
and man-made evils in our society. So, there are variable causes
for which the blessed ones can and should donate. Unlike before,
nowadays there are numerous charitable institutions across the
globes that are working in different areas. The main aim of a
charitable organization is to help the people in need and work
for their development. For instance helping in the rehabilitation
of victims of natural disasters like famines, tsunami, earthquakes
etc., working for prisoners of war or any oppressed community,
child education, women upliftment and so forth are some different
tasks taken up by these organizations. So, charitable organizations
can variously be literary, religious, scientific and so forth.
These organizations largely rely on government grants and the
charities/ donations by the well-to-do section of society in order
to function or continue with their respective social service.
However, people may have different motives behind donating money
in these charitable foundations. While there are those who contribute
for the sake of human welfare there are others who do it to earn
recognition and save tax. Tax wavier possibly is one of the foremost
reasons at the moment that instigates many affluent people, multinational
companies, and corporations to give money in these institutions.
However, those who donate for the purpose of saving tax should
keep in mind that every charity is not tax deductible.
There are basically two types of non-profit organizations.
1. Charitable institutions that are exempted from paying taxes.
2. Institutions to which the donations made are tax-free.
Such organizations are registered under the 501 (c)(3) category
of the Internal Revenue Service. Once you make a donation to
any such organization, get a receipt made as evidence to assist
you in tax deduction.
But besides enlisted in the 501 (C)(3) category, several other
things about an organization should be considered before making
a donation.
· Check the annual report of the organization. Annual
report will brief you with the requisite crucial details such
as current work, situation, finances etc. of the organization.
· Also take into consideration the institutions aims
and means proposed to achieve them.
· Notice the amount of donations the charity receives
annually and its sources.
· In case of door- to- door solicitations, prior to
parting off with your money, try to wrinkle out the important
details (the name, full address, goals, licensing, tax deduction
and so forth) of the organization. If that person is unable to
present the details, he might be fake, trying to befool people.
Charities can be made in different forms. Giving cash is one
way; other ways include giving those items that the constitution
requires. For example if the charity is working for rehabilitation
of tsunami victims then facilitating it with tents, food stuffs,
clothing etc. will be an appropriate rather wonderful charity.
Generally people are under the illusion that only large sum of
money can be given as charity, but this is not the case like.
Donation can be as small as 10 or 20 dollars. The amount does
not actually make a difference, what actually matters are your
philanthropic feelings and desire to contribute.
About The Author: Mansi Gupta writes about charity donations.
Learn more at http://www.givingtocharities.com.
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