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Things to Consider While Making Donations to Charitable Organizations

Making donations for good causes has been prevailing in the world for many years. However, in a few recent decades, the charity activities increased exponentially and today a huge amount of donations are made every year collectively by individuals and businesses.

Among many generous countries in the world, the United States of America is a prominent name. The yearly donations raised by the Americans count in billions of dollars with a significant proportion going to the local charities. While many US donors want to donate more to international charities, there are few reasons that restrict the flow of donations outside the US.

While donating to charities is definitely good work, it is important to lay emphasis on various factors associated with it. Some of the most important things that any individual who is willing to make donations should consider are as follows:

• Doing a Thorough Research on the Charitable   Organization

One of the most important activities that many people skip before making donations is to perform research on the charity to which they want to donate. This is a crucial step that needs to be undertaken to ensure that the organization receiving the donations is genuine and will utilize the funds for the cause propagated by it. Because of the increasing reports of fraud charities that wrongfully take advantage of people’s generosity, it is important to investigate the charity beforehand. One of the most common ways of getting an idea of charity’s authenticity is to approach the IRS to check the charity’s 501 (c)(3) status. In addition, donors can also seek Better Business Bureau (BBB) to get reports about the charities and their reputation.

• Different Forms of Donations

The donations accepted by most charities vary widely from monetary to personal property. In fact, there are charities that accept donations in the form of goods, vehicles, art, jewelry, stocks, patents, etc. Consequently, anyone who wants to give donations to a charity can have multiple options at their disposal.

• Tax Deductions

In the USA, there are certain charities that offer tax deductions to donors. To be precise, organizations that have 501(c)(3) status are applicable to get federal tax deductions. Apart from US charities, non-US charities can also apply to get the 501(c)(3) status from the US Internal Revenue Service (IRS). However, it is quite important to note that the tax deductions available on non-cash items like vehicle are usually less as compared to the monetary donations.

• Business Donations

Just like individuals, businesses can also provide funds to charities and there are many benefits of doing so. In general, the tax deductions offered to the small business and individuals are almost similar. By donating to charities, businesses not only do well for the society but it also helps them to increases their brand awareness and improves employee retention & satisfaction.

Donating to charitable organizations is a great way to help society and people. However, while making a donation it will be added advantage to know about certain things like research on charity, tax deductions, etc.

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