The holidays are a favorite time of year to donate to charities. Not only can you help out an organization you support, you can feel good about contributing money to a cause besides spending on presents. Additionally, since charitable donations are tax deductions, it’s could lower your taxable income for the year.
With that said, if you don’t already have a charity you want to support, how do you go about choosing one? And once you have chosen one, what is the best way to donate? Donating money to a charity is often a personal decision – here are some tips to help you out.
Choosing a Cause
What is it that you care about? Is it children? Animal welfare? Supplying fresh water to developing countries? There are a lot of causes to choose from, and a lot of charities supporting each cause. If you start by identifying your cause and having a clear understanding of what problem you want to help solve in the world, you can then begin to narrow down your search and choose a charity.
Understand the Charity
When you look at different charities, be sure you really understand what they do and how they do it. Most of this can be done by looking at an organizations website. Look for their goals, how they plan to achieve those goals, and any information backing up their success at doing so. Many organizations will publish their financial information as well, making it easy to understand their organization financially, if you are so inclined. If you can’t find what you are looking for online, give them a call. Most non-profits are more than happy to talk to you about what they are doing.
Give Freely
When you donate money, don’t put restrictions on how the money should be spent. By putting limitations on how they can spend the money, it can create more work for them, costing them money or resources. Instead, let them make the decision of what to do with the money. If you support the organization, trust them to make the right decisions. And when they do something good, celebrate their success and know that you had something to do with it.
Make Fewer, Larger Donations
If you plan on financially supporting an organization beyond the holiday season, consider making larger donations, but less of them. The reason for this is that every donation incurs a transaction cost. Even if you give by check or cash, there are resources that are required to process the donation. Instead, make one or two large donations each year. This will help make as much money as possible go to support the organizations cause, which is the ultimate goal.
Follow them on Social Media
Most non-profit organizations are very active on social media. Whether it’s Facebook, Instagram, Twitter or any other social media site, be sure to connect with them. This will allow you to be able to follow along with what they are doing and how your money is being spent. Additionally, it will give you an easy opportunity to share the organization with your friends and family. You never know – someone you know might be interested in supporting them too.