Giving to charity is a way that an individual can help their favorite organization. It also allows them to qualify for a tax write off if they decide to itemize. However, even with good intentions, a person may not end up donating anything before the end of the year. It helps to have a charity strategy to act as a guide. Here are five tips that will help a person decide where they should donate their tax refund in 2019.
Alignment Of Social And Personal Goals
There are a large number of excellent charities throughout the world. It’s best if a person aligns their social and personal goals with a charity that is involved with a subject matter that they have a passion for. This might be world hunger, a local homeless situation or spinal cord injury research.
Financial Responsibility Of The Charity
Is a targeted institution spending their money wisely? If they are just blowing their funds on marketing and administration, a person may decide to look for a charity that’s more financially responsible. A charity will have a way to examine their finances. An organization that is financially sustainable and efficient is a charity that’s healthy. They will list their mission and be transparent and accountable to the public.
The Effectiveness Of A Charity
Does a charity make a difference in the world or its local community? Typically, they will have some type of report that they publish so that a person can examine their goals and see if they have been able to accomplish them. Have any meaningful changes occurred due to the existence of the charity?
Good Leadership
To ensure that a charity is successful, it will usually be driven by a strong leader who helps the organization stay on the right path so that their goals are met. It may be better to donate to this type of charity as they will be able to use a person’s donation in a prudent manner. Organizations that have a high turnover rate may be unable to keep quality leadership, which is a warning sign that they may be unstable.
Estate Plan Integration
While money can be donated to a charity each year and act as a way to cut taxes, a person should also think about making donations later via an estate plan. There are a number of planning strategies that can be taken to ensure that their donation goals are met.