Charity is perhaps the best feature of humanity. It is a perfect
way to support the downtrodden. There are many types of natural
and man-made evils in our society. So, there are variable causes
for which the blessed ones can and should donate. Unlike before,
nowadays there are numerous charitable institutions across the
globes that are working in different areas. The main aim of a
charitable organization is to help the people in need and work
for their development. For instance helping in the
rehabilitation of victims of natural disasters like famines,
tsunami, earthquakes etc., working for prisoners of war or any
oppressed community, child education, women upliftment and so
forth are some different tasks taken up by these organizations.
So, charitable organizations can variously be literary,
religious, scientific and so forth. These organizations largely
rely on government grants and the charities/ donations by the
well-to-do section of society in order to function or continue
with their respective social service. However, people may have
different motives behind donating money in these charitable
foundations. While there are those who contribute for the sake
of human welfare there are others who do it to earn recognition
and save tax. Tax wavier possibly is one of the foremost reasons
at the moment that instigates many affluent people,
multinational companies, and corporations to give money in these
institutions. However, those who donate for the purpose of
saving tax should keep in mind that every charity is not tax
deductible.
There are basically two types of non-profit organizations.
1. Charitable institutions that are exempted from paying taxes.
2. Institutions to which the donations made are tax-free. Such
organizations are registered under the 501 (c)(3) category of
the Internal Revenue Service. Once you make a donation to any
such organization, get a receipt made as evidence to assist you
in tax deduction.
But besides enlisted in the 501 (C)(3) category, several other
things about an organization should be considered before making
a donation.
? Check the annual report of the organization. Annual report
will brief you with the requisite crucial details such as
current work, situation, finances etc. of the organization.
? Also take into consideration the institutions aims and means
proposed to achieve them.
? Notice the amount of donations the charity receives annually
and its sources.
? In case of door- to- door solicitations, prior to parting off
with your money, try to wrinkle out the important details (the
name, full address, goals, licensing, tax deduction and so
forth) of the organization. If that person is unable to present
the details, he might be fake, trying to befool people.
Charities can be made in different forms. Giving cash is one
way; other ways include giving those items that the constitution
requires. For example if the charity is working for
rehabilitation of tsunami victims then facilitating it with
tents, food stuffs, clothing etc. will be an appropriate rather
wonderful charity. Generally people are under the illusion that
only large sum of money can be given as charity, but this is not
the case like. Donation can be as small as 10 or 20 dollars. The
amount does not actually make a difference, what actually
matters are your philanthropic feelings and desire to
contribute.
About the author:
Mansi gupta writes about charity donations. Learn more at
http://www.givingtocharities.com
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