If you want to show empathy to the less fortunate in society, the festive season is the best time to donate to the vulnerable people around you. However, you have to be sure that every coin you give helps those in need. It would help if you took your time to vet every organization you intend to write a cheque to ensure that they are genuine in their work.
As the Covid-19 pandemic persists, more workers are losing their jobs. However, the considerate firms and state departments are sending their employees on leave. The lucky workers receive unemployment benefits while some are going for months without any money for their basic needs. Luckily, the neediest citizens are getting meals and groceries from food banks in different states. However, the situation could change in a few weeks if some federal protection laws end at the end of December. That makes this year the best year to give.
Why this is the best year to give
Different charity organizations received a huge chunk of money and other gifts from different people and organizations last year. Most of it came from personal contributions, while various foundations and corporations gave the other fraction. Amongst the charity organizations, a considerable percentage of them are public charities. And, these are the organizations you should scrutinize adequately before giving them your donation.
Suppose you plan to offer a donation this year. In that case, it is essential to know that the relevant authorities have expanded all the tax deductions for non-profit-making organizations this year. Those who opt for the standard deduction instead of itemizing can deduct a high percentage of qualifying organizations’ cash contributions with the current laws. If you are an itemizer, the cash donation you give might be equivalent to your total annual gross income. And, that might be more what you are used to in the previous years.
How to determine genuine charity organizations
If you want to distinguish between genuine and fraudulent charity organizations, financial advisors could offer you the help you require. Financial advisors have an in-depth understanding of the operations of different charity organizations. And, they will be the best to help you determine the genuine charitable groups.
Another way of determining a genuine charitable organization is checking whether it has complied with the internal revenue service regulations. The regulatory body requires all the non-profitable organizations except churches to file a 990 form annually. When filling out the forms, the organizations have to give detailed information about their salaries and audited accounts for the last financial period. All these will make you determine whether you are giving your money to deserving organizations.