Top 4 Benefits of Charitable Donations
Donations (Photo credit: Matthew Burpee)
In today’s world, everyone needs a little help every now and then. Donating time, money, and items to charity is a good way to reach out to those in need. These donations add up and can make a difference in the lives of those struggling. Feeding a child who is suffering from malnourishment, provide winter coats for those without warmth, or donating your time to teach adults to read all benefit those in need. But have you ever asked what do you get from your donation? Here are a few inspiring reasons to donate to charity.
Tax deductions
The first benefit most people know about is that a percentage of donations are tax deductible at the end of the tax year. The most important part of deducting contributions is to know the rules. Not everything is deductible and you will need to keep records and receipts of donations. For example if you bequeath $100 to an approved charitable organization you benefit from 67% of that denotation. So you can reclaim $67 when you file your taxes. In the United States, the tax software available will help you rules and sorting out the percentages. If you have questions about how to process your cash and property donations, ask a tax professional. The rates and items deductible vary based on the rules for your country, so ask many questions to make sure that you are correctly including all your donations.
Return on Investment (ROI)
Another strong reason to donate to charity is the return on investment for you and for the charity. The personal ROI is what you receive for your donation. There is the personal connection to the charity that will grow through time. If your passion is AIDS education and your donations always focus on the development of education and supporting the race for a cure, then your name could become synonymous with this important medical and social fight. This return could lead to the development of charitable trust, gift annuities, pooled-income funds, or matching benefits. For example if you donate $100 to your preferred charity and challenge friend and family to donate as well you are creating more donations. Furthermore the same challenge could include the added benefit of a matching donation from you to increase the amount of given. This return on investment keeps increasing the potential for the charity as well.
Staying informed
When you step away from the financial benefits to you and the charity, there are still positive reasons for your donation. When you associate yourself with a charity, you are connection to the social network of the organization. For example when you join Child’s Play, a charitable organization that donates games to children in hospitals, you become part of their network. The organization keeps you up to date on the news, happenings, events, and changes to the charity. When Child’s Play was featured at Penny Arcade eXpo (PAX) it was a brand new charity that was born out of a bet, now it is an international force for children. Joining your passion with the needs of a charity will keep you informed and aware so that you can spread the word of the charity and their needs.
Karmic Balance
One of the best benefits of donating is the satisfaction of helping a fellow human being. Whether you are spending time answering calls at a suicide helpline or writing a check to the World Wildlife Fund (WWF) you are helping someone. These donations provide positive feelings for you and all those you help.
This article is written by Jay a finance writer from comparepaydayloans.co.uk.
