Giving Wisely

The key to wise giving is being informed about a charitable organization before you write your check or donate your time. Here are some tips for giving wisely and additional resources to help guide you in making charitable donations.

• Be an informed giver. Ask questions before you give. Give only when you feel comfortable that your donation will support an organization and activities in which you believe. If a solicitor calls, find out how much of your donation will actually go to the charity.
• Refuse high-pressure appeals. Legitimate charities won't rush you to donate.
• Ask for written information. A legitimate charity will be willing to send you information before you donate. Ask for information on the organization's mission, how your donation will be used and proof that your contribution is tax deductible.
• Call the charity. To avoid falling victim to sham solicitors, contact the charity directly before giving a donation by mail or to the person knocking at your front door. This will allow you to make sure the solicitation you received is authorized and legitimate.
• Watch out for similar sounding names. Scam artists often try to take advantage of names that sound or look like those of respected, legitimate charities.
• Don't send cash. For your security and tax records, make your donation by check. Jot down the official name of the charity on your check for record keeping purposes.
• Be wary of a group that offers to pick up your monetary donation. A legitimate charity will have an official address where you can mail your donation. Be wary if an organization thanks you for a pledge you don't remember making and offers to send someone to pick up your donation. If ever in doubt, check your records for any pledge or donation.
• Fundraising appeals for police, firefighters and veterans. Solicitations on behalf of these types of causes often draw favorable responses from donors. If you would like to know more about such appeals, please consult the Attorney General’s brochure on Fundraising Appeals for Police, Firefighters and Veterans.
• Keep the right records. Make sure your donation is tax deductible from federal and state income taxes. Donating to some tax-exempt organizations may not necessarily result in a tax-deductible donation and some organizations may even try to use terms like "tax I.D. number" or "keep this receipt for your records" to suggest they are tax-exempt charities when they aren't. For record keeping, a canceled check or credit card statement generally is sufficient for IRS purposes when you donate less than $250. For larger donations, you will want to get properly worded receipt from the charity confirming your donation. And, remember, your tax deduction is reduced by the fair market value of any gift, meal or other incentive received from the charity.
• Consider alternative forms of giving. Consult with your tax advisor about the many ways to support a charity. These alternative forms of giving include charitable gift annuities, gifts in-kind, and endowments.
• Volunteer. Giving of your time and personal skills can be as valuable as financial donations to nonprofit organizations. You can also benefit by meeting people who have shared interests.