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How to Donate Money

How to Donate MoneyEach person has a desire to share what he has and with the recent natural calamities that have transpired in the country, a lot of charitable institutions are formed. These institutions all call for the attention of the people to act and be part of helping those in need.

Donating is easy but there are things that you have to consider when doing so. Read on and bring out the philanthropist in you.

Choose a recipient based on their cause

If you are sincere with giving, you should make sure that whatever you give will be donated to a good cause. Unfortunately in this tricky world, a lot of people claim to have good intentions. They organize fund raising activities but only a small portion of the proceeds go to the actual beneficiaries.

When choosing to which organization to give, study their cause, their wish lists and the people behind it.

Study the background of the organization

You can check the internet or ask other uninterested parties about the background of the organization to where you are planning to donate.

Look up what are the organization’s previous activities, how do they operate and other related matters.

Although you want to donate because you want to share your blessing, it is also equally important that the money you donate will go to the right hands.

Donate at the end or start of the year

When you donate, you do not only help charitable institutions in their cause. You also help yourself by maximizing your tax benefits.

How’s does that work? When you donate before December 31, you will be diminishing your returns for the current year and when you donate on January 1 of the following year, you can cover the possible tax rates for that year.

Payroll giving

Some companies are connected with charitable institutions so they can easily coordinate if they have something to give. Some other companies also encourage their employees to give through automatic payroll deduction.

For example, an employee receives $1000 per month and then he decides that we wants to give 10% of his income to an organization. He can do so be asking the finance section of his company to automatically deduct the 10% off his salary and he will receive only the remaining 90%.

Use your mobile phone

Why go through the hustle bustle of going to charitable institutions when donating can be done on your fingertips? Know where to donate and when you are ready, start ticking and tapping your phone to donate.

But of course, do your homework first and make sure that you are using legitimate mobile apps.

Get a receipt

Tax deduction is one of the most interesting perks of donating money. Even if you claim to have the humblest and selfless reasons for donating, it would be best if secure a receipt for your donation.

The receipt will be your proof that you donated for a good cause. If you are not after the tax deduction, you can still you the tax deduction to donate more to other charitable organization.