8 mistakes to avoid when donating to a charity
Donating to charities is a noble cause, and it is often the first place one starts to give back to society. There are many ways to donate, and social media and online platforms help spearhead these campaigns and give them a broader reach. But, as noble and praiseworthy as the gesture is, you must consider several factors before contributing. Here are eight common mistakes people make while giving to a charity that you must avoid.
8 mistakes to avoid when donating to a charity
Not verifying details and credentials
There are hundreds of fundraising events and charities that collect money for the same cause. Websites like Candid, Great Non-Profits, and Charity Navigator provide great resources to check everything you need to verify the legitimacy of the charitable organization. You can even check the credibility of the fundraiser on the official website of Better Business Bureau.
Waiting to donate only at the end
Research suggests that a majority of donors wait till the month of December to contribute to charities they support. However, this one-time donation can be split up into manageable amounts so that you can provide support on a regular basis. Experts suggest a nominal monthly commitment so that the funds are always flowing into the charity.
Not finding a niche cause
Unless you have unlimited funds to aid all charities, it’s better that you figure out the non-profit you want to assist the most at a particular time. These organizations can focus on various causes, from climate change to health care and everything in between. Find what you are passionate about and align your interests with that cause to show support.
Falling for emotional pleas
Social media has become a hotspot for running ad campaigns that appeal to donors across the globe. These campaigns often rely on the same tragic story template, but that doesn’t mean there aren’t other pressing causes and charities that need support and equal importance. Do not fall prey to every emotional plea put out on the digital platform. Support what you believe in firmly and hold a firm stance for the cause that matters most to you.
Not understanding the purpose
Making random small or big donations may not necessarily be helpful. Instead, plan your finances in such a way that you can rotate available funds and channel the support promptly. The amount doesn’t matter; what matters is every donation’s true, timely impact.
Donating for rewards or benefits
There is absolutely no harm in getting recognition in return for making a generous contribution. But understand that that shouldn’t be the only motivating factor. Not all charities reward with prizes or shower compliments on donors, as most of the support is kept anonymous.
Donating only cash
Donations need not always be monetary. Charities raising funds also require clothes, food rations, and essentials for those who need the basics. It is better to check with the charity and note its seasonal demands apart from monetary contributions.
Failing to declare with the IRS
Donations for various charitable purposes qualify for exemptions and can be claimed as a deduction to reduce tax liability. If you have made a sizable contribution, avail these benefits and other free allowances the IRS provides to donors who qualify under the terms. For this purpose, you need to declare and show all contributions on paper.