Direct Donation to Charity

We’ve covered who you might give to and what you can give. Now let’s talk about how to give. Sometimes it’s better to give directly to the organization you want to support. But there are some options that may save you taxes or make it easier for an organization to receive your donation. There are ways to donate to provide both a donation to your organization and cash payments to you or your family. I’ll cover the pros and cons of designating your gifts to a specific purpose or letting the organization decide the best use of the funds. Let’s start with the easiest way of giving, donating directly to the organization you want to support. The big advantage of this is that it’s easy. There are some disadvantage though compared to other methods we’ll look at later in this lecture. You can’t give a fully anonymous gift if you want to deduct the donation. You can’t ask the not be mentioned in public listings or gifts but the organization will still need to know your name for the IRS record keeping requirements if you want to deduct the gift. The organization may have a hard time accepting and processing your donation. If you want to give it investments. You can’t make a big donation and receive the big deduction now, but distribute the cash to the organization until a later date or dates. We’ll look at some ways you can do this with other giving methods. Multiple gifts means keeping track of many receipts. If you want to deduct the contributions on your taxes, you may be able to get matching gifts for your donations when you give directly to an organization. Many companies match a portion of the gifts to their employees, check with your company’s human resources or marketing departments to see if they do this. Giving directly to an organization is easily the most popular way. But in the next few lectures, I’ll explain some other options that may be better for you and the organization that you support. Donor Advised funds are one of these options that is very quickly gaining popularity. I’ll show you why in the next lecture.