Donating to charitable organizations is a wonderful way to support individuals and charitable institutions and contribute to improving lives. There are many different ways you can donate to charities, whether you prefer to use your checkbook, set up a private foundation, or make online donations. You can find a method that suits you, your budget, and your personal preferences. In this article, we will explore seven ways you can donate to charitable organizations.
Use Your Checkbook
Donating to charities by writing a check is still one of the most common ways to give in the world. It’s a simple and straightforward method. Some of us may have difficulty finding our checkbooks right now, but we are still likely to write a check to a charity rather than provide our credit card through an online donation form, especially if we are donating a large amount. Although online donations are becoming increasingly important each year, checks still work. Do not doubt that your donation can make a difference, even if it is small. Individuals constituted more than 68 percent of total charitable donations in the United States in 2018, according to the GivingUSA report.
Online Donations
Online donations are often referred to as crowdfunding. Donors with modest incomes can make a tremendous difference. Although online giving is not the primary way donors donate, it is the fastest-growing method.
Donor-Advised Funds
Donating to donor-advised funds has become very popular. Also known as DFAs, this type of charitable giving has grown significantly. In 2020, grants from donor-advised funds to qualifying charities were estimated to be around $34.67 billion, an increase of 27 percent from 2019.
Donor-advised funds are charitable giving accounts provided by a sponsoring organization, and they aim to offer easy and affordable alternatives to creating a private foundation. You put money in the account, allow the sponsoring organization to manage it, and then donate to the cause of your choice.
A donor-advised fund can be started with a contribution of $5,000. The host organization invests the money, and the donor can make grants from these assets whenever and to whomever they choose.
Moreover, once a donor-advised fund is established, the sponsoring organization provides a lot of assistance in choosing charities that can be supported by conducting research on your behalf.
There is much to like about donor-advised funds as they provide easy giving while also potentially benefiting from a charitable tax deduction.
Create a Private or Family Foundation
Some high-net-worth donors and families create private or family foundations for their charitable activities.
Although some private foundations are large and well-known (the Rockefeller Foundation, for example) and have staff teams, most private foundations—about 80,000—do not have employees and contain less than a million dollars in assets.
The IRS has several rules for private foundations, including requiring that a certain percentage of their assets be given as annual grants. Even if your foundation is small, you will need good legal advice and a team to set goals, research charities, and handle finances.
However, creating a private foundation is the best way to ensure that your charitable donations align perfectly with your values and interests.
Start with Foundation Source where you can find the reasons and other causes for creating a private foundation.
Join
To the Donation Circle
If you have ever joined a writing or investment club, you know the basics of the donation circle. Donation circles are relatively new to the charitable landscape but have gained momentum quickly. Donating through a donation circle is enjoyable and practical.
Where can you look for a donation circle? Your local community is an excellent place to start, especially when looking for a small and locally-themed circle. But there are many circles that have spread statewide or even nationwide.
For more information, check the National Donation Network and the Women’s Donation Circle Guide from the American Association of Retired Persons.
Donate Your Car, Food, or Clothing
Donating your old car can be the perfect trick to get rid of it and do something good at the same time. Although there are car donation scams, you can do this in more ways than ever that benefit a great charity. Just follow our rules.
Don’t forget to also donate other things like furniture, appliances, food, and clothing. Food kitchens and thrift stores are facing more needs than ever. To find food kitchens near you, check out FoodPantries.org. Look for these types of charities in your neighborhood and ensure that you are donating directly in full.
Donate Your Time
Volunteering doesn’t cost a dime, and it’s something that should be done these days. More volunteers than ever, from all age groups and backgrounds, are finding their way to the causes that inspire them.
Volunteering has changed significantly over recent years. You can now work in person or remotely by becoming a virtual volunteer. You can even combine travel with volunteering.
You can also tailor your volunteering according to your interests, lifestyle, and availability. Volunteering is great for teenagers and those looking for friends, and it can help you get a job. It may also make you healthier.
Whether you have one hour a week or one day a year to offer, use our tips to help you find the perfect volunteer opportunity for you.
Frequently Asked Questions
What is the safest way to donate to a charity?
Make sure that the charity you choose is reputable and you can see where their donations go. Donate via credit card or check. If you choose to donate online, ensure that the webpage where you enter your payment information has “https” in the web address. This means your information will be encrypted and secure.
What are some ways you can support a charity?
You can support a charity by volunteering your time, making a financial donation, or getting rid of items you no longer need. You can be a volunteer, make a donation, or dispose of things you no longer require.
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Sources:
- The Balance. “Americans gave $427.71 billion to charity in 2018 amid complex year for charitable giving.”
- National Philanthropic Trust. “The 2021 DAF Report.”
Source: https://www.thebalancemoney.com/making-charitable-donations-2501933
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