Charity Banners

Charitable organizations in the U.S. are recognized by the Internal Revenue Code. They are contained in Section 501(c) of the code. Many of us are very familiar with the 501(c)(3) designation among many categories included in the code. In IRS Publication 557, 501(c)(3) is defined as Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animal Organizations.

Generally they are non-profit associations or corporations and are tax-exempt unless they have unrelated business income which is subject to income tax.

The definition of a 501(c)(3) is clearly stated in the tax code. Anyone donating to any of these causes can get a tax deduction depend on their tax status. If a donor wants to know whether the intended charity is listed under the code, donor can review IRS Publication 78.

In order to obtain the status under the IRS code, an organization seeking the tax exempt status must submit Form 1023 along with the required fee to the IRS.

Before you make a charitable donation, check to see whether they are recognized by the IRS and make sure to obtain a receipt for your donation.

Planned giving or charitable gift annuities are common today with many non-profit organizations benefiting greatly from the tax exemption that comes through this avenue from both the state and federal governments. There are many advantages that are closely associated with the charitable gift annuities and many and any organization that is duly registered can benefit from this kind of an arrangement.

Advantages of charitable gift annuities
1. One of the greatest benefits of the planned giving includes tax deduction from a certain percentage of the gift given. The donor is also guaranteed of a certain amount of tax-free retirement income which can be enjoyed by the donor or his or her spouse. This income can either be deferred until they are needed or be given immediately.
2. The recipients of the gift are also guaranteed of a certain amount of funds which will become available to them upon the demise of the donor.
3. Of the many benefits of the gift annuities, the peace of knowing that there are lives helped and changed by the gifts given is one of the greatest benefits for many.
4. In case the gift annuity is funded using appreciated securities, there is no straight tax on capital gains. The tax is outspread over your allowance payments and only a small section of the investment gains is reportable.

It is important to bear in mind that the rate of your annuity is determined by your age. The older the donor, the higher the payments issued. The gift annuity can benefit both the donor as well as some other two people they might decide to name, giving them a fixed income throughout their lives. It is important to consult a financial adviser before buying the charitable gift annuities and understand how your financial situation could affect the payment of your payments as far as tax is concerned.

Organizing a charity event may be a daunting task. But planning ahead and choosing the right team can create a successful event. Here are some guidelines used by successful charity event planes.

Consider a list of people who will be included in your organizing team. Start with your family and friends. They will be able to help you to put together a winning team.

Consider the cost of the event. Remember you want to maximize the donation to the charity not the cost of the event.

Consider a neutral location that is convenient to your invitees and cost no funds. Talk to some local agencies that maintain event halls.

Set a date and time for the event. A place donated by a friend, family member or an organization cost next to nothing.

Prepare an eye catching brochure and personalize it to all your invitees.

Promote the event. More participation increases the chance of maximizing the donations.

Provide wide variety of activities that are age and place appropriate. Keep in mind that you need to keep all attendees entertained and stay the entire duration of the event.

This Christmas season take the opportunity to light up the life of a needy person by giving. In this materialistic world we always take for granted the act of helping out needy people. If you look around there are many destitute people who are desperate for help. Here are some ways you can reach out to them.

Food

Contribute to the food banks and food rescue organizations by donating to charities such as America’s Second Harvest, The Food Project, Feeding America and many other such charities to provide meals to millions who have no other source of food other than what they get from these organizations.

The red kettle Christmas campaign

The Salvation Army’s red kettle Christmas campaign helps millions of needy people nationwide by donating food, clothes and toys. You can donate cash or you could volunteer to be a bell ringer.

Medical care

Charities such as the Shriners help provide much needed medical care for children by operating hospitals and other charities like the Ronald McDonald charity supports patient’s families while getting medical care.

Books

You can enrich the lives of many by donating your unwanted or used books to charities like to Room to Read who will distribute them to needy communities worldwide.