Charity Banners

If your charity event for the year is a silent auction, here are a few things you need to know. Firstly, start off with involving some items that are generally used at all silent auctions and have proven to be show winners. There are a few businesses that are constant donators of items for such charity events, and are used to the procedures involved. This means that they already understand the idea behind the silent auction and the cause towards charity and will be more than willing to help you out. Try to get creative with the items up for auction, but the basic items will create the best possible foundation for your charity event.

Basic silent auction items:

Hotel stays – first you should try your luck with a few local hotels and try to market their offerings as a romantic escape, a getaway close to home, etc. You might be able to even find people in your charity who work in the local hotel industry, and they might be able to set you up with a good deal.

Restaurant vouchers – approach restaurants in your area, and ask them to donate a few ‘dinners for two’. These are top sellers at silent auctions and have proven to be quite popular. If looking for more creative offers, try to set up a good deal with a local bakery or even gourmet groceries or supermarkets.

Retail donations – any store that sells basic items can be asked to donate anything and everything. Try the local gift store, boutique, clothing store, grocery, etc. Give them the option of even donating a gift certificate.
Services – ask your local hair dresser, yoga studio, dance instructor or anyone else to donate an hour or two of their services towards your charity.

Auctions held for charity might be new to you, or perhaps you are unfamiliar with its mechanics. Here are a few valuable tips to ensure that the auction committee selection process takes place in a manner in which you are comfortable with:

1. Find some auctioneers – if you are starting from the very beginning, a good place to start would be the National Auctioneers Association website. Here you can find auctioneers, especially those with ‘BAS’ credentials and other related training and qualifications.

2. Compare and research auctioneers – today’s business environment is a competitive one, so it would augur well for you to have done a considerable amount of research before you finally choose your auctioneers. Scrutinize their websites, other auction companies and experts in order to make the best choice among them before you make a decision.

3. Informal interviews – make a standard set of questions and call up a few of the shortlisted auctioneers. Here are a few questions you might like to ask them:
a. Availability on date of auction
b. Number of auctions conducted annually
c. Number of auctions handled similar to your event
d. Method of work process with clients
e. Video of a previously conducted auction
f. Client referrals
g. Price structure and service offering

4. Speak to the clients you are referred to by the auctioneer. Talk to them and query as to what issues they encountered with the said auctioneer, what they liked about his style and method.

5. Final interview. If you like what you hear, then you should call the auctioneer in for a final interview. If satisfied with the outcome, ask them to present you with a proposal for your event.

Perhaps donating cash to a charity of your choice is what you do every year. Sometimes this can be a bit taxing, especially taking into consideration the economic crises and financial difficulties most people are experiencing at present. Taking all this into consideration, you also probably want to still continue making donations to this charity. A more viable method might be donating stocks instead of hard cash. This is not only easier on the purse, but might also enable you to up your donation to the charity.

In order to donate stocks towards a charity of your choice, you have to be in the 15% federal income tax bracket or above it. It is important that you also have adequate tax deductions that can be itemized rather than experience the normal deductions on your personal tax return.
Once you have chosen the charity you want to donate to, make sure that it is registered under the 501c3 nonprofit label with the IRS, otherwise your stock donation might not be deductible.

Next, analyze all the stocks you have under your name. The stocks you want to donate must be listed under your name for a minimum period of one year and have risen fairly significantly. This does not necessarily mean the stock must be one company’s stock, but must be under your name for at least a year.

If the stock you want to donate has risen in terms of value, then your donation to the charity is more than what you put down money for. For example, if you paid $5,000 a year ago, and at present if it is worth $20,000, then your donation to the charity is four times more than what it actually cost you.

Next, it might be worthwhile for you to do the math and take into account the amount of tax savings you have made. Here is an example:

Sold stock ($) Capital gains tax/15% Tax savings
$10,000 $9,000/15% $1,350 ($9,000×15%)

Putting together a children’s charity, just like setting up any other charity requires a lot of commitment, dedication and perseverance. There are also a number of things you need to do in order to ensure that your charity is recognized by the government, its agencies and other potential donor groups.

Step One: First, figure what kind of charity you would like to establish. It would be a good idea to analyze the area and decide on what is needed for the children. Amongst yourself and your group, research the legalities and required paperwork which is required by the Internal Revenue Service. You will also need to ensure that your charity is able to report back to the relevant authorities regarding the earnings and expenditures.

Step Two: Next, you need to figure out the mission and the goals of the charity. It is at this stage that you need to ensure that you secure a group of volunteers and start looking into funding mechanisms. A well-worded mission is necessary for this. Ensure that it not only outlines the scope of your charity, but its functions as well.

Step Three: Put together the Articles of Incorporation. This document is one of the legal steps that are necessary when setting up a children’s charity. The Articles of Incorporation just requires you to provide basic information regarding the charity, its name, purpose, scope, structure and other important facts.

Step Four: Define bylaws for your charity. These will outline the manner in which the charity will operate, how the hierarchy will be responsible for all major decisions and how you intend the charity to be run.

Step Five: You need to fill out the necessary paperwork that will qualify your charity for non-profit status. You can contact the state authorities directly for the required paperwork.
Step Six: You will need to get yourself a Federal Employer Identification Number. This is utilized by the IRS to identify your charity, and is a prerequisite for all IRS paperwork that would help in obtaining grants as well.

Step Seven: It is important that your children’s charity is recognized by the IRS so that your charity will avail all benefits made available to it. This is where the Articles of Incorporation and bylaws come into play.

Step Eight: Choose a board of directors and a registered agent who will be responsible for overseeing the operations of the charity.

Setting up a children’s charity is not as easy task, and it is important that you seek expert legal advice during the process to ensure you get everything right.

Private foundations are not-for-profit organizations and are usually non-government organizations too. These organizations have a principal which is managed by a group of trustees or a board of directors. Private foundations maintain a range of activities including educational, charitable and even religious causes via grants meted out to other non-profit organizations.

The Internal Revenue Service Code defines a private foundation as a US or foreign charity that is exempt from all taxes. In other words, public charities are organizations that are not private foundations as stipulated in Section 509(a) of the Internal Revenue Service Code.

The difference between public charities and private foundations is that charity organizations usually gain funding and other support mainly from the general public, and also receives grants from the government, individuals and private foundations. It is only a handful of charities that partake in grant-making activities, while a majority of them carry out direct services and tax-exempt initiatives. Private foundations are different. Their funding comes from one source, like for example, a family or an individual or even a corporation. They are more commonly not grant makers nor do they get funds from the general public.

Keep in mind that just because an organization has the word ‘funding’ in its name, that does not necessarily mean it is a private foundation. The word has no real legal meaning. It would be helpful to take a look at the manner in which the IRS defines an organization and their criteria for filing either Form 990-PF which needs to be filled out annually by private foundations or Form 990 which should be submitted by public charities and non-profit organizations on an annual basis.