Consider Charitable Giving

Consider Charitable Giving
by FiGuy

Hopefully you have been out shopping, and helping to stimulate the economy - without overspending and breaking your budget. Most folks know that the Christmas season is make or break time for retailers, with Black Friday being the day they hopefully get out of the red ink and into the black, indicating profits rather than losses. The holiday season is make or break time for many charities, too. If you have the means, consider making a contribution to your favorite cause.

If you've already tightened your belt to the last notch, and just don't have any spare cash, drop a couple loose coins in a bell ringer's bucket, and don't let the guilties get you. If, however, you've been a prudent consumer, saved a little money to spend at this time of year, found a few real bargains, and managed to have more on hand that you thought you would, you could go buy a few more trinkets, or you could help make a difference in a cause near and dear to your heart. Part with a few bucks, giving feels good!

Don't consider giving just for the tax deduction, but if you do give, there is no reason not to take any available deductions that are offered. Depending on where you live, and your tax status and filing practices (you need to itemize), you might even wind up getting more bang for your buck than the value of your contribution. State income taxes are often affected by what happens with your Federal taxes, which can act as a multiplying factor. If you are always close to break even (which you *should* be - more on that next year!) and neither paying a large amount, nor receiving a large refund, that small contribution might just keep you from having to write a check come April 15th. It won't make much of a difference monetarily, but it may be very convenient. Why not pay out a little now, while you have it, rather than later, when you may not?

Make sure the charity of your choice is a 501c or other qualifying organization if you are planning to take a deduction, but there are many worthwhile causes to give money to that are not necessarily tax deductible, so don't let tax status alone determine if the charity is a worthwhile one to you! Pick things you care about, and help out with what you can within your means. If contributions are deductible, get a receipt so you can make the claim when you file. If they are not, enjoy the warm fuzzy feeling of giving and don't worry about it.

Seek out the charity, and give directly. Don't respond to cold calls or middlemen! At best they will be eating up some of your contribution for their own overhead (and you will be encouraging folks to interrupt your dinner to pester you). At the worst, they are scam artists who will pass along nothing to the charity, but will be lining their own pockets. Direct giving avoids all that, and makes sure the charity gets the most potential from your gift, however small.

Don't break the bank because you feel guilty, but if you do have some money to spare, however little it may be, do consider making a gift to a worthwhile cause.

Have a Merry Christmas (or your particular holiday celebration of choice), and a Happy New Year!