Effective Giving
Thanks to the proliferation of charities, donors have more choices than ever when they give. There are tens of thousands of charitable organizations registered in the United States today, and any one with a 501(c)(3) designation is eligible to receive tax-deductible contributions.
Giving opportunities are available for virtually every area of interest, including:
- Religious groups
- Educational organizations
- Social services agencies
- Nonprofit arts organizations (museums, theaters, dance and musical groups)
- Environmental groups
- Hospitals and medical research
- Disaster and poverty relief organizations
Finding a charity that matches your priorities.
When you give, select a charity whose mission you support, and be sure the organization will use your money wisely. Independent Sector provides an excellent summary of issues to consider when evaluating a charity. A similar article appears as a feature on LibrarySpot.
GuideStar, a Web-based informational service, provides access to relevant information about virtually all not-for-profits by uploading every Form 990 submitted to the Internal Revenue Service. This form includes both financial and operational data. GuideStar offers a tutorial on reading this form at its Web site. The Program offers guidance as well.
Other groups have developed methods to analyze and assess the operating practices of not-for-profits, although none has reviewed all eligible organizations. Some pay particular attention to organizational efficiency, as measured by the percentage of donations used for expenses/administration (the lower the better). The Better Business Bureau Wise Giving Alliance site is well done. Other groups to consider include Independent Charities of America, a vetting service searchable by theme, and the American Institute of Philanthropy, which rates some 500 major charities. You can also check directly with the Federal Trade Commission on whether a charity of interest to you has been involved in any findings of fraud or other violations.
The T. Rowe Price Program for Charitable GivingSM is designed to enable you to structure your giving wisely from a tax-planning point of view. These laws change constantly, and it is always wise to consult a qualified tax attorney.
