These days you may receive several calls or mailings for making charitable donations. Of course we all want to help out. Money is very tight in this economy and no one wants to feel that they are being taken for a ride. But how do you ensure that you are making a donation to a reputable charity? Follow these simple tips and you will be on the path to making a wise decision:
- Check to ensure that the charity is a tax exempt non-profit. Use IRS Publication 78 to check the status of the charity before you donate. Publication 78 is available at the IRS website and is always up to date. http://www.irs.gov/charities/article/0,,id=96136,00.html
- Use Charity Navigator to check the purpose and financials of your chosen charity. Charity Navigator is available at www.charitynavigator.org.
- Lastly, review the charity’s Form 990, Return of Organization Exempt from Income Tax. This form is required to be filed to the IRS yearly by tax exempt non-profits. Additionally, this form is required to be posted on a non–profits website or made readily available to the public. The 990 will list the amount of income earned and expenses incurred.
With these few simple tips, you are on your way to making a wise decision with your charitable dollars.