SeaComm Federal Credit Union OFFICIAL BLOG

What to Know Before You Make a Donation

People donate billions of dollars to non-profits every year. If any of that money is going from your pocket to charity there are a few things you need to make sure you know.

Is the Charity Authentic?

It’s important to verify the charity you decide to donate to. There are plenty of scammers out there who just want to take your money. Sites exist that serve as watchdogs for charities, like Charity Watch. You will be able to see all of the information about the charity as well as a grade. This is an easy way to tell if the charity or organization you want to donate to is legitimate.

Where is the Money Going?

The money you donate should be reaching the beneficiaries of the charity you choose. Experts say that organizations that allocate at least 75% of their budgets to the services they provide are the most efficient. When looking up your charity you will see that expense ratio which shows how much of every dollar the organization collects goes to their relief efforts. Donating to organizations with better numbers means your money will go where you intend it to.

Tax Information

Check out the nonprofit status of the organization you plan to donate to. You can see if your donation is tax deductible. That information will be available when you look up the charity. 501(c)(3) and 501(c)(4) are the most common tax statuses. If you have any questions or want to know more about deducting donations from your taxes, the IRS has your answers.

The act of helping others, donating to charity, or volunteering your time is a rewarding experience. At SeaComm, we strongly believe in supporting the communities we serve through donations and acts of kindness. Click here to learn more about our most recent contributions!    


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