The Benefits of Charitable Giving

On a typical balmy and sun-drenched Florida Sunday, I had an opportunity to volunteer at a local charity’s garage sale. The purpose: Raising funds to purchase provisions for its food pantry.

The director of the charity said supplies were low, and I thought maybe they were just short a few non-perishable food items. But when I was led into the community service building to see the food pantry in person, I was shocked: The food on the shelves wasn’t just low but nearly non-existent!

While the garage sale was a success, the money collected still wasn’t nearly enough to stock the barren shelves with much-needed food and household supplies. Consequently, the food pantry made the painful — but necessary — decision to open to the public only one day every other week instead of every week.

And unfortunately, the dire situation of my local charity is being multiplied thousands of times over:

According to the U.S. Department of Agriculture, 1 in 6 Americans or 50 million people are food insecure. This includes 1 in 4 children.

Clearly, soaring unemployment across the nation has caused a rising need for emergency food at precisely the time when fewer people are able to donate.

Plus, in addition to local food pantries, there are nearly two million U.S. non-profit organizations with diverse missions from fighting Alzheimer’s disease to supporting children’s research hospitals. They too are in need of donations and volunteers.

But even if you decide to help out and contribute, you face some difficult questions: Which of these charities are reputable? Which share your ideals? And will they use your donations judiciously?

An ideal place to start your search for the best charitable organization is by visiting www.guidestar.org. The website collects and publicizes information on 1.8 million nonprofit organizations, and it allows you to perform a quick and basic search on these nonprofits for free. Plus, even more information is available at no charge if you complete their registration form and log in.

All nonprofits that are listed in the GuideStar’s database can readily update their individual online reports. Then, the information they provide is combined with numerous outside sources to give you a comprehensive, fair overview of the charity with a special focus on the nonprofit’s mission, goals, accomplishment and needs.

Of course, beyond the satisfaction of simply helping others and supporting causes you believe in, remember that there is also a strong financial incentive to donate — a tax deduction!
So before you donate to your charity of choice please verify that it is an organization eligible to receive tax-deductible charitable contributions. Simply visit www.irs.gov and click on “Charities & Non-Profits” at the top of the homepage to search for your potential charity. Alternatively, you can confirm an organization’s status by calling the IRS at
1-877-829-5500.

To deduct your charitable contributions, you must file Form 1040 and itemize your deductions on Schedule A.

For more information on the tax implications of charitable gifts, please contact your CPA or tax advisor.

Just remember, in order to give wisely, you should do your research and select a reputable charity that is in sync with your values and meets your criteria. As we enter the season where charitable giving becomes a focus for many, that’s the best way to ensure that your contributions make a difference in the lives of others who are in need right now.