10 tips on giving wisely

Sunday, Jun 07^th 2009

By Nancy French

Budget for giving. In these tough financial times, it's more important than ever to think through the month's expenses and plan on what you can afford to give. Allow the kids to be a part of this process, as it's never too early for understanding the concept of giving and sacrifice.
Plan your philanthropic activities right into your budget just as you would other financial obligations. (I use www.mytotalmoneymakeover.com to keep track of how much I pay each month -- to both the garbage man and to the charities we support. This is especially helpful if you want to support a local charity and keep the electricity on!)
Be an informed giver. Don't be afraid to ask questions when you're asked to give, including the specific name of the solicitor and his or her relationship to the organization, how much of your gift will be used for overhead, the specific project the money will go toward, and other important information. Give only when you feel comfortable that your dollars will be going to support an organization you know and believe in. Network for Good provides information on more than 1 million charitable organizations, so it's never been easier to make an informed decision on the organization you decide to help.
Keep the right records. For gifts of less than $250, a canceled check or credit card statement is sufficient for IRS requirements. For larger gifts, you'll want to get a properly worded receipt from the charitable organization as a confirmation of your tax—deductible contribution. When you donate through Network for Good, you will receive an e-mail confirmation of your gift (which meets IRS requirements).
Be aware of how much is really tax deductible. Did you know that if you receive a premium in exchange for your gift (such as a book or a dinner), the amount of your tax deduction is reduced by the fair market value of the premium. Important fact: you can turn down the incentive item if you wish to claim a deduction for the full amount of your gift. Ask the receiving organization for more details.
Ask about matching gifts. Many employers match gifts made by their employees or make grants to organizations recommended by employees. Be sure to ask your company how it can help your gift go even further.
Remember, your gift can be confidential. If you prefer to have your gift remain confidential, you should let the organization know and they should honor your request. This will cut down on other charities contacting you.
Consider alternative forms of giving. Don't overlook the benefits to you and your cause received from bequests, charitable gift annuities, gifts in kind, endowments and many other creative forms of giving. Ask your tax advisor or attorney to help you make the best plan for you and your family.
Volunteer! In addition to financial support, consider giving your time and skills. Not only will you help the organization, but you'll also make contacts, hone your skills, and learn more about the charitable cause to which you're committing your time and money. Plus, this is a good way to get the kids involved as well.
You have the right to say no. Give when you can, but if you're unsure or feel uncomfortable—or if a cause falls outside your plan for giving—don't be afraid to say no. Or, ask for more information and take more time to think and consult with your spouse before making a decision.

This list was taken (and adapted from) the Network for Good.

Nancy French

Nancy French is an author, commentator, and mother. Her next book, about the year her husband spent in Iraq is due out July 4, 2011. Connect with her on Facebook at www.facebook.com/NancyAndersonFrench and follow her on Twitter at https://twitter.com/nancyafrench.

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