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How to Donate Responsibly
Posted By Miranda Marquit On 12/17/2012 @ 12:02 pm In Philanthropy | 3 Comments
One of the ways that you can help others, and receive a financial advantage in the form of a tax break is to donate to charity. Your philanthropic efforts  can provide a way for you to influence the world in a good way, as well as give a little back to you with the help of a tax advantage.
Most of those who donate aren’t just in it for the tax break. Many of us like to feel as though we are doing good in the world, and helping others. Donating responsibly is part of making sure that your money goes to a good cause.
Your first stop should be Charity Navigator . With the help of this web site, you can see where the money goes. You can see how much of the money goes toward administration, CEO and executive pay, fundraising, and how much actually goes toward helping the people that the charity is supposed to help.
Before you give, look at Charity Navigator to see where the money is going. Compare charities, and see which are likely to have a greater impact with your charity dollars. When you use this type of tool, it’s easier to identify which charities are going to be more responsible with your money and help more people.
Another option is to look into local charities. While you might not find local charities on Charity Navigator, you can still see the effect that they have in your hometown. You can attend board meetings (and maybe even be on the board!), and learn about where the money is going. You can also donate our time and effort, in addition to donating your money. This can be a great way to get more personally involved and increase the level of responsibility you take for your charitable donations.
Look into the efforts by local charities, and choose some that will help improve life right where you live. This is one of the reasons that I regularly donate money, as well as non-perishable items, to the local food bank.
If you want to keep giving to charity, you can set up a charitable trust. This is a way to help grow the assets of the charity, establishing a regular source of income in the service of a cause that you believe in. There are two main charitable trusts that you can consider:
Either way, there are tax benefits while the donor lives, and there are estate tax benefits later on. Make sure that you consult with a professional before setting up a charitable trust.
No matter how you do it, responsible giving should be a part of your finances. Find ways to make sure your money is being put to good use, and you will feel better about your positive impact on the world.
(Photo: Mr. Kris )
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 Your philanthropic efforts: http://www.bargaineering.com/articles/kids-money-encourage-philanthropy.html
 Charity Navigator: http://www.bargaineering.com/articles/charity-navigator-research-charities.html
 Mr. Kris: http://www.flickr.com/photos/krislitman/493626935/
Thank you for reading!