Tips for End-of-Year Charitable Giving

While Americans eagerly embrace the spirit of giving throughout the year, a lion’s share of donations are made in December.

Nonprofit Source, an agency serving the nonprofit industry, reports 30 percent of annual giving occurs in December and a whopping 10 percent of donations are made in the last three days of the year.

Why?

“For some people, it’s a business decision: December 31 is the deadline to maximize your tax deductions for the year,” said Mike Losneck, CEO of Eaton Family Credit Union. “For others, they get swept up in the seasonal festivities and holiday spirit makes them more likely to give and to donate a larger amount.”

According to Giving USA 2018, an annual report on philanthropy, charitable giving in the United States continued its upward trend in 2017, as an estimated $410.02 billion was given to charitable causes. For the third year in a row, total giving reached record levels, the agency reports on its website.

Like in previous years, the majority of giving came from individuals. Specifically, in 2017 individuals gave $286.65 billion, accounting for 70% of all giving and representing a 3.0% increase over the prior year.  

Recent consumer surveys sponsored by the Ohio Credit Union League found Ohioans also embrace the spirit of giving during the holidays. As many as 55 percent of Ohio consumers made a holiday-related charitable contribution at the end of the year. Of those contributions, 55 percent of donors said they write off the charitable donations on their taxes.

“Due diligence is as vital in charitable giving as it is in any other part of one’s financial life,” Losneck suggested.

For consumers to get the most out of their financial giving, the Ohio Credit Union League recommends they:

  • Plan ahead – Include charitable giving as a line item in your budget. As with most things, planning ahead makes the process easier. If you have a favorite charity you want to support, itemizing allows you to plan for giving without cutting into your regular monthly expenses.
  • Choose where you give carefully – Only donations given to qualified charitable organizations are deductible on your taxes. If you’re not sure whether an organization qualifies, go to www.irs.gov and search “charities/non-profits.”
  • Get a receipt – Cash contributions, no matter the amount, must be verified by a financial institution record or in writing by the recipient organization. The receipt should include the name of the charity, a date, and the amount given. Although a copy is only necessary in case of an audit, it’s a requirement, since 2007, that all monetary donations be recorded. 
  • Check with a credit union – If you can’t decide how to give back to your community, contact a credit union. Many credit unions partner with local charities to support those in need, right in your backyard.

Dave Godek

Dave Godek, MBA

Business Development Manager

Eaton Family Credit Union

Read More on Community
Volume 9, Issue 12, Posted 1:10 PM, 12.07.2018