‘Tis the Season for Charitable Giving

Check, before you write one!
By Brandpoint

The holiday season often serves as a reminder to help the less fortunate. Donors also understand the practical benefit of giving before the end of the calendar year: To ensure credit is received on their next tax return. About 34 percent of all charitable giving is done in the last three months of the year, according to Blackbaud Inc., a supplier of software and data intelligence services for nonprofit organizations.

N.C. Provides Reports

Do your research if solicited for a contribution by an organization. North Carolina’s Charitable Solicitation Licensing Division (CSL) posts an annual report each year online. It comes out in November or December and lists solicitors in ABC order. At a glance, you can see a solicitor’s gross receipt and the percentage and amount of money that actually went to the organization.

To best research an organization, look at its listings in the last few years of CSL’s annual reports. To download reports, visit sosnc.gov/forms/csl (scroll down a page). To contact CSL by phone, call 919-807-2214. North Carolina residents may call toll-free at 1-888-830-4989.

Note: Some charities are not required to get a license to solicit contributions (although some get a license anyway). For example, churches and volunteer fire departments are exempt. Visit bit.ly/NCCSL to see CSL’s list of 13 exemptions.

If you are planning to support a charitable organization, consider these tips for smart giving.

More than 1 million charities are registered with the Internal Revenue Service (IRS). Compare organizations and study how they function by visiting sites such as the Better Business Bureau. The best charitable organizations ensure that the majority of their revenue goes to the causes they support, not operating expenses. Websites such as charitywatch.org provide lists of top-rated charities. You can also find up-to-date information on thousands of nonprofits at guidestar.com.
Many contributions to approved charities are tax-deductible. The key to receiving a tax deduction is making sure the charitable organization you choose is qualified by the IRS. The IRS offers an exempt organizations tool to see if an organization is eligible to receive tax-deductible charitable contributions. Visit irs.gov and put “eo select check” in your field search, or you can go directly to the tool at bit.ly/IRS-ExemptCheck. You must also keep accurate records, so get a written acknowledgment or receipt for your financial contribution.
For those who can’t afford to contribute financially to a cause, there are other ways to make a positive local impact throughout the year. Do business with companies that give back. For example, Ply Gem Industries, a manufacturer of home building products based in Cary, recently launched the Home for Good project to build affordable housing across America. To learn more, visit HomeForGoodProject.com.
Take your giving beyond a monetary donation and volunteer your time. This way, you keep it local and you can often better see how donations are spent. Websites where you can match your location and interests with organizations include volunteernc.org.