By Robert Fragasso & William Taylor, Fragasso Financial Advisors
The holidays are not only a time of celebration, but also a time of thankfulness and recognition. The spirit of the season, as well as the closing of the current tax year, often motivates people to contribute to charitable causes. But before donating this year, there are certain measures individual donors should take to ensure their donation satisfies both the tax and emotional advantages charitable giving can bring.
Identify the right fit
One of the most crucial issues for donors is finding a cause that has personal significance to them. If a donor does not already have a connection to a cause, we always recommend using the many resources available online to find the right fit. Sites such as GuideStar and Charity Navigator are two of the best tools available to assist in the research phase. These outlets can help narrow options by connecting users with organizations that are both reputable and IRS-qualified.
Make sure your donation is allocated appropriately
In addition to understanding how to choose the right charity, we also urge our clients to make sure most of the donation goes to the cause itself, rather than administrative expenses. While these expenses are certainly necessary, some donors prefer their contributions be allocated toward a specific initiative or portion of the charity. This can prove to be challenging for most, and oftentimes, charity contacts do not have control over where a gift is spent. [Read more…]