Wise giving during the holiday season with the BBB
BATON ROUGE, La. (WAFB) - It’s the season of giving and the IRS has joined with several leading nonprofit groups to highlight a special tax provision allowing more people to deduct donations to qualifying charities on their 2021 federal income tax return.
That special rule helps most people get a deduction of up to $600 for gifts to charity.
The Better Business Bureau has tips on how to safety give back:
Watch out for name similarities. When charities seek support for the same cause, their names are often similar. Before you give, be sure you have the exact name of the charity to avoid a case of mistaken identity.
Review the website carefully. A responsible charity will include the following facts on its website: its mission and programs, measurable goals, and concrete criteria that describe its achievements. You should also be able to find information on their finances. Keep in mind, the type of work a charity does will affect its costs.
Avoid on-the-spot donation decisions from unfamiliar organizations. The holidays bring a higher frequency of donation requests outside public locations. Don’t succumb to pressure to make an immediate giving decision. Responsible organizations will welcome your gift tomorrow as much as they do today.
Be wary of emotional appeals. Marketers have been known to exploit the holidays to make emotional pleas to donors. Instead of making an impulse decision based on emotion, do some research first to verify that your selected charity operates ethically.
Check with state charity officials. In many states, charities are required to register with the office of the attorney general before soliciting. Checking your state’s appropriate office is an easy way to detect if an organization is legitimate or not. You can find this information on the National Association of State Charity Officials (NASCO) website.
Rely on standards-based evaluations. Charities can demonstrate they are trustworthy by agreeing to in-depth evaluations such as the 20 BBB Standards for Charity Accountability. Get free access to charity reports at Give.org.
Research tax status. Don’t assume every organization claiming to do good is a tax-exempt charity. You can check an organization’s tax status with the IRS Tax Exempt Organization Search tool. Also, make sure your contribution is tax deductible.
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