Charity Organizations Impacting You
Many people assume that charity organizations will only benefit those who are in need of immediate assistance. Although their primary concern is the wellbeing of the needy individuals that they serve, charity organizations can benefit everyone no matter how poor or rich.
Understanding Charity Organizations
In order to understand how charity organizations can help you, you must understand what they are and how they are seen. Charitable organizations are classified as being a non-profit organization that focuses resources on philanthropic goals. Due to their positive impact on the communities they serve, charities are often exempt from much regulation or taxes. The definition of “charity” is sometimes up for debate; however any organization that provides a service to needy individuals is typically considered a charitable organization.
Many charities decide to focus efforts on specific regions or services (such as providing drinking water to rural Kenyan populations). This allows the charity to focus their resources and become efficient in providing one or a few services.
Loved Ones in Need of Charity Organizations
Although the most prominent charity organizations are those that provide drinking water, education and food to starving people around the world, there are a number of charities closer to home that could helped you or loved ones.
You can refer your friends to the nearby homeless shelter or soup kitchen if they are in need or you can donate money directly to charities to support your community. If you have any questions about donating or are just looking for a reputable place to donate, please click the side tab.
Tax Benefits from Charity Organizations
One of the most well known benefits of donating money to charity organizations are the tax benefits that come with it. Many people who are unwilling to pay taxes in a higher income bracket may decide to donate money to charities so that taxable income is much lower. These tax benefits are often called “write-offs” where you can lower the amount of annual taxes you must pay to the government. To many people, this is a much more efficient use of money.
Next time you are preparing to pay your taxes, spend some time researching the best charities to donate to. You will find that many provide you with great tax benefits.
Research Charity Organizations
Before you donate any money you should research the charity organization. Not only are some poor at delivering services to those in need, but there are strict rules about what is considered a “charity organization” and what is not. If you are in the United States of America, you will find that Internal Revenue Service (I.R.S.) has created publication 78 that is the master list of organizations considered to grant tax deductions.
If you try to claim deductions on charity organizations that are not considered as such by the U.S. government, then you may find yourself in trouble with the I.R.S. Try to find the publication and ensure you are remaining within the boundaries of the law.
Non-Cash Donations to Charity Organizations
If you have items that you would like to offer to charity organizations, there are also ways to save money on your taxes. These non-cash donations can be evaluated by the organization that you give it to for tax purposes. Take this evaluation and file it with your taxes so that you will receive the proper deductions.
For more information about tax deductions and their relationship with you, please contact a tax attorney. Additionally, if you are in need of recommendations for the best charities to donate, please ask the question on our informational side tab.