THE COUNTDOWN IS ON!!! JUST 48 HOURS UNTIL SANTA ARRIVES!!!
It’s almost Christmas and the perfect time of year for charitable contributions. Not only is it good to give as well as get during the holiday season, but December 31 is the last chance for 2011 tax deductions. But before you give, make sure that your money is well spent. Only one-third of donors do any research beforehand. While there are lots of worthy groups, there are also lots of illegitimate ones. Or organizations that spend too much on “administrative.” If more than twenty-five percent of funds are being used on fundraising and overhead costs (salaries, etc), then steer clear. Some good resources to check before making any donations include:
http://www.foundationcenter.org/
http://www.charitynavigator.org/
http://www.greatnonprofits.org/
To get a tax deduction for your good deed, the following is required:
1. The group must have a 501 (c) non-profit designation.
2. Your donation is only deductible in the same year it is made.
3. There is no limit to how much you can give and still get a tax deduction unless you contribute more than 20% of your income.
4. You can’t deduct the value of the hours you put in as a volunteer, but you can claim out-of-pocket expenses, such as gas mileage.
5. Get a receipt and pay with a check made out to the organization (not a person) rather than cash so that you have valid records for your taxes.
If you can’t afford to make a donation, but would still like to do something, consider volunteering. So many groups need help serving meals or answering phones or helping with mailings or delivering meals or visiting at a nursing home or animal shelter, etc. Just an hour or two a month is a huge help. It doesn’t have to be that structured. If you know of an elderly or disabled neighbor that is alone, bake some cookies and deliver them (and ask if they need anything). Or send a card to the troops. Or drop off a couple of canned goods to your local food pantry or donate a coat you no longer need to Goodwill or Salvation Army stores.
This is my last post for 2011, but I’ll be back in January with the latest travel news and much more. Until then…MERRY CHRISTMAS AND HAPPY NEW YEAR!
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