Were you aware that not all contributions are “tax deductible”? Just so that you don’t get an unpleasant surprise after you donate larger sums of money, it pays to understand the mechanics of this.

For starters, know the difference between “Tax Exempt” and “Tax Deductable”

“Tax exempt” does not necessarily mean “tax deductible.” A tax exempt organization is one that does not have to pay income taxes. Contributions made to certain tax exempt organizations may be deductible on the donor’s federal income tax return. While the Internal Revenue Service (IRS) defines more than twenty different categories of tax exempt organizations, contributions to groups in only a few of these categories are tax deductible.”

According to the Better Business Bureau, there are more tips to keep in mind when you contribute to a worthy cause. Here are some of them:

1. Contributions are deductible for the year in which they are actually paid or delivered. Pledges are not deductible until the year in which they are paid.

2. The value of volunteer time or services to a charitable organization is not deductible. However, out-of-pocket expenses directly related to voluntary service are usually deductible.

3. Contributions for which the donor receives a gift or other kinds of benefits are deductible only to the extent that the donation exceeds the value of any benefit received by the donor.

4. Direct contributions to needy individuals are not deductible. Contributions must be made to qualified organizations in order to be tax deductible.

5. Contributions made directly to foreign organizations are not deductible, except in the case of some Canadian organizations as specified in an agreement with that country. Also, donations to charities located in Puerto Rico, the Virgin Islands, and other U.S. possessions are deductible. Such organizations must meet the requirements for exemption under the income tax laws of the United States.

6. The “fair market value” of goods donated to a thrift store is deductible as long as the store is operated by a charity. To determine fair market value, visit a thrift store and check the “going rate” for comparable items. One cannot take a deduction if the goods are sold on a consignment basis whereby the original owner gets a percentage of the final sales price.

7. Donated property may generally be deducted at the fair market value of the property at the time of the contribution. However, there are special rules for the donation of cars and other vehicles. Also, in certain situations, additional details concerning the property’s worth may need to be filed with the IRS in order to make a deduction on your federal income tax forms. Also, gifts of appreciated property are subject to special rules. See a financial advisor for additional details.

Technorati Tags: charity, donations, tax deductable donations, contributions, better business bureau

Categories: Charities, Organizations, Tips | Tags: better-business-bureau, charity, contributions, donations, tax-deductable-donations

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What does the word CHARITY mean, exactly? The word has many connotations these days - from simply giving alms to the poor, to a more divine, selfless way of giving.

So just in case you were wondering, here are the word’s origins. The rest is up to you.

“….The word “charity” entered the English language through the French word “charite” which was derived from the Latin “caritas“.

In the twelfth century it indicated a state of benevolance towards the poor.

In the fifteenth century charity was used to indicate ‘the state of love or simple affection which one was in or out of regarding one’s fellows; an occasion or body of people seeking to embody that state; the love of god, in both directions.

The fraternity was the embodiment of this ideal. In 1700, it meant ‘an optimistic judgement about the good intentions of others; an act of benevolence towards the poor or needy; an institution erected as a result of such an act.”

In Christian theology:

“…Love, in this sense of an unlimited loving-kindness towards all others, is held to be the ultimate perfection of the human spirit, because it is said to both glorify and reflect the nature of God. In its most extreme form such love can be self-sacrificial. Confusion can arise from the multiple meanings of the English word “love.”

The love that is caritas is distinguished by its origin, being Divinely infused into the soul, and by its residing in the will rather than emotions, regardless of what emotions it stirs up. This love is necessary for salvation, and with it no one can be lost.”

Technorati Tags: Charity origins, charity definition, charity history,

Categories: Charities, Ideas, Religious | Tags: charity-definition, charity-history, Charity-origins

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Theres not much worse than door-to-door solicitors who you actually have to deal with in your own home. When it comes to people asking for donations, by far the easiest ones to refuse (if desired) are the letters (chuck it in the bin if you’re not interested), second comes the telephone solicitations (sorry, I’m not interested, or some other lame excuse which the person on the recieving end does not see, thankfully).

But door-to-door solicitations are the most difficult to deal with, rather like the kindly-faced vacum cleaner salesman or friendly Mormon at your door. I remember some years ago when a “Norwegian Wooden Floor” salesman knocked on our door one day, with a neckbrace. Needless to say, a week later, our living room floor was covered in some very expensive flooring.

But back to the topic. Dealing with solicitors can get hairy, so here are some things you should be ASKING should you get a phone call, or worse, the door-to-door solicitor.

And most importantly, if you are feeling pressured, getting repeated visits or feeling harassed, ring your Better Business Bureau IMMEDIATELY and report them.

1. WHAT? is charity’s name and details such as address, contact numbers, license, website.
2. WILL your donation be tax deductible? Ask if they have the necessary licences etc.
3. ASK about registration and licensing. This is required in most areas.
4. ASK about the percentage of the money that will go to the cause - especially of it is for a benefit event.

** WATCH out for those that pressure you to give money right then and there. A good charity will welcome your donation at any time.

Technorati Tags: Charity tips, investigating charities, questions to ask charities, donation tips

Categories: Campaigns, Charities, Ideas, Organizations, Tips | Tags: charity-tips, donation-tips, investigating-charities, questions-to-ask-charities

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With Halloween just around the corner, it also means that the season of giving is practically upon us, so many of us are starting to think about ways we can give.

Well, without wanting to sound like a Scrooge, the fact of the matter is that there unfortunately are many scammy operations out there, or even simple red tape or massive overhead costs that makes it more difficult than ever for your money to actually reach those in need.

So my next few posts will be dedicated to some easy advice on how we can do the best we can to make sure what we give goes to those who really need it.

To start off, here are 4 simple tips when giving to charity:

1. Double check NAME of the charity. Some may just be named that way to confuse you to think it is a well-known charity with a similar name. Check their credentials online and visit the place yourself if possible. Other good ways to check out a charity is through your local charity registrar and or with the local better business bureau.

2. Remember that giving to charity is tax deductable. Keep records of all your charitable donations as well as costs you may have incurred while volunteering.

3. Always give by cheque - and make it payable to the charity, never to an individual. Stay away from cash donations.

4. When receiving an appeal in the post - check to see if there is the name and address of a reputable charity, and what they are already doing to solve the problem. Be wary of sob stories.

Technorati Tags: charity tips, investigating charities, donating tips

Categories: Charities, Ideas, Tips | Tags: charity-tips, donating-tips, investigating-charities

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As mentioned in the last post, fighting for children being abused by online pornorgaphers is a vital cause we should all be part of. Today, child exploitation on the internet is a sickening MULTI-BILLION dollar industry. Here are some of the grueling facts to be aware of according to data from the National Center for Missing & Exploited Children (NCMEC):

19% of identified offenders had images of children younger than 3

39% had images of children younger than 6

82% had images of children younger than 12.

There is also strong evidence of increasing involvement by organized crime and extremist groups.

Children have become a commodity in this insidious crime. While there is no empirical research on the scope of the problem, but there are estimates.

A 2002 report by ECPAT International and the Bangkok Post estimated that 100,000 child-pornography web sites existed on the Internet in 2001.

According to the Internet Watch Foundation in the United Kingdom, there has been a 1500% increase in the number of child-pornography images since 1997.
In 2003, the National Criminal Intelligence Service in the United Kingdom estimated that child-pornography web sites had doubled worldwide; that half of the sites are hosted in the United States; and that the number of sites in Russia had doubled.

NCMEC reports that most child pornography consumers and child victims are Americans; however, the financial transactions are increasingly moving offshore.

The International Centre For Missing and Exploited Children, or the IMEC, is a global agency which promotes the well-being and safety of children all over the world though its various programs.

Visit the orginazation’s site to get the latest facts, legislation on the issues as well as ways on how YOU can help end this terrible crimes today.

Technorati Tags: Children, Child exploitation, child crimes, pornography

Categories: Campaigns, Charities, Children, Organizations | Tags: child-crimes, Child-Exploitation, Children, pornography

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