7 Tips on Donation Wisely

1. Budget for donation.

Plan your philanthropic activities right into your budget just as you would other financial obligations.

2. Be an informed giver.

Don't be afraid to ask questions when you're asked to donate, including the specific name of the solicitor and his or her relationship to the organization, how much of your gift will be used for overhead, the specific project the money will go toward, and other important information. Give only when you feel comfortable that your dollars will be going to support an organization you know and believe in. Network for Good provides information on more than 1 million charitable organizations from the GuideStar database, so you can make an informed decision on the organization you decide to help.

3. Keep the right records.

For donations of less than $250, a canceled check or credit card statement is sufficient for IRS requirements. For larger gifts, you'll want to get a properly worded receipt from the charitable organization as a confirmation of your tax—deductible contribution. When you donate through Network for Good, you will receive an e-mail confirmation of your gift. This e-mail meets IRS requirements.

4. Consider alternative forms of donation.

Don't overlook the benefits to you and your cause received from bequests, charitable gift annuities, gifts in kind, endowments and many other creative forms of giving. Ask your tax advisor or attorney to help you make the best plan for you and your family.

5. Volunteer!

In addition to financial support, consider giving your time and skills. Not only will you help the organization, but you'll also make contacts, hone your skills, and learn more about the charitable cause to which you're committing your time and money.

6. Don't forget you have the right to say no.

Donate generously when you can, but if you're unsure or feel uncomfortable—or if an organization simply falls outside your plan for giving—don't be afraid to say no. Or, ask for more information and take more time to think before making your decision.

7. Be a proactive donator!

You don't have to wait to be asked. Plan a giving strategy in advance. Contact the charitable organizations of your choice to discuss how your gifts can be most effectively used and help make a difference in your community.

From www.networkforgood.org