How To Find A Reputable Charity

Practices of Savvy Donors

1. Be Proactive In Your Giving
   
   Smart givers generally don't give reactively in a knee-jerk reaction. They don't respond to the first organization that appeals for help. They take the time to identify which causes are most important to them and their families. And they are specific about the change they want to affect. For example, they don't just support generic cancer charities, but instead have targeted outcome goals for their giving, such as providing mammograms to at-risk women in their community.
2. Hang Up The Phone / Eliminate The Middleman
   
   Informed donors recognize that for-profit fundraisers, those primarily used in charitable telemarketing campaigns, keep 25 to 95 cents of every dollar they collect. These donors never give out their personal information - like credit card accounts, social security numbers - over the phone. If they like what they hear in the pitch, they'll hang up, investigate the charity on-line and send their contribution directly to the charity, thereby cutting out the middleman and ensuring 100% of their donation reaches the charity. To help you investigate charities that solicit you, we include each charity's contact information in the bottom right-hand corner of its ratings page.
3. Be Careful Of Sound-Alike Names
   
   Uninformed donors are easily confused by charities that have strikingly similar names to others. How many of us could tell the difference between an appeal from the Children's Charity Fund and the Children's Defense Fund? Their names sound the same, but their performances are vastly different. Would you be surprised to learn that the Children's Charity Fund is a 0-star charity while the Children's Defense Fund is a 3-star charity? Informed donors take the time to uncover the difference.
4. Confirm 501(c) (3) Status
   
   Wise donors don't drop money into canisters at the checkout counter or hand over cash to solicitors outside the supermarket. Situations like these are irresistible to scam artists who wish to take advantage of your goodwill. If for no other reason than they want to take the tax deduction, smart givers only support groups granted tax-exempt status under section 501(c) (3) of the Internal Revenue Code. All of the charities evaluated by Charity Navigator meet this basic requirement.
5. Check The Charity's Commitment To Donor's Rights
   
   Giving to charity shouldn't be a one-sided relationship. It should work more like a partnership. Smart donors seek out charities that want partners and not merely donors by checking if the charity has a donor privacy policy whereby the organization promises to never sell or trade the donor's contact information. Furthermore, smart donors know that in the majority of cases the onus is on the donor to 'opt-out' of having their personal information shared with other entities. To save you time, our financial ratings include an assessment of each charity's commitment to donor's rights.
6. Obtain Copies Of Its Financial Records
   
   Savvy donors know that the financial health of a charity is a strong indicator of the charity's programmatic performance. They know that the most efficient charities spend at least 75% of their budget on their programs and services and less than 25% on fundraising and administrative fees. They understand that a charity's ability to sustain its programs over time is just as important as its short-term day-to-day spending practices. Therefore, savvy donors also seek out charities that are able to grow their revenue at least at the rate of inflation, that continue to invest in their programs and that have some money saved for a rainy day. All of this analysis is provided on Charity Navigator's website for free, but when considering groups not found here, savvy donors ask the charity for copies of its three most recently Forms 990. Not only can the donor examine the charity's finances, but the charity's willingness to send the documents is a good way to assess its commitment to transparency.
7. Review Executive Compensation
   
   Sophisticated donors realize that charities need to pay their top leaders a competitive salary in order to attract and retain the kind of talent needed to run a multi-million dollar organization and produce results. But they also don't just take the CEO's compensation at face value; they benchmark it against similar-sized organizations engaged in similar work and located in the same region of the country. To help you make your own decision, Charity Navigator reveals that the average CEO's compensation of the charities we evaluate is roughly $150,000. In general, salaries tend to be higher in the northeast and at arts and education charities. Sophisticated donors also put the CEO's salary into context by examining the overall performance of the organization. They know it is better to contribute to a charity with a well-paid CEO that is meeting its goals than to support a charity with an underpaid CEO that fails to deliver on its promises.
8. Start A Dialogue To Investigate Its Programmatic Results
   
   Although it takes some effort on their part to assess a charity's programmatic impact, donors who are committed to advancing real change believe that it is worth their time. Before they make a contribution, they talk with the charity to learn about its accomplishments, goals and challenges. These donors are prepared to walk away from any charity that is unable or unwilling to participate in this type of conversation.
9. Concentrate Your Giving
   
   When it comes to financial investments, diversification is the key to reducing risk. The opposite is true for philanthropic investments. If you've really taken the time to identify a well-run charity that is engaged in a cause that you are passionate about, you should then feel confident in giving it a donation. Spreading your money among multiple organizations not only results in your mail box filling up with more appeals, it also diminishes the possibility of any of those groups bringing about substantive change as each charity is wasting a large percentage of your gift on fundraising and overhead expenses.
10. Share Your Intentions And Make A Long-Term Commitment
    
    Smart donors support their favorite charities for the long haul. Again, they see themselves as a partner in the charity's efforts to bring about change. They know that only with long-term, committed supporters can a charity be successful. And they don't hesitate to tell the charity of their giving plans so that the organization knows it can rely on the donor and the charity doesn't have to waste resources and harass the donor by sending numerous solicitations.

Tips For Older Donors

• Don't succumb to pressure tactics.
  
  Well-run charities don't use pressure tactics to garner support for their mission. They don't have to. Their good work and financial health speaks for itself.
• Verify their claims that you've contributed in the past.
  
  If a caller or an appeal letter indicates that you've given in the past, but it doesn't sound familiar to you, be sure to check it out for yourself. Look up previous entries in your checkbook or past credit card bills and confirm for yourself that you've supported this particular charity before.
• Do not feel compelled to give because you received a gift.
  
  Just because you received some mailing labels, cards or an umbrella, that doesn't mean you're required to reciprocate with a donation. Be especially wary of sweepstakes that require a contribution to enter. Again, a reputable charity doesn't need to employ such inefficient and deceptive fundraising tactics.
• Be careful of impostors.
  
  Scam artists often use sound-alike names to trick you into thinking they represent a legitimate charity.
• Hang up the phone.
  
  Ask the fundraiser to send you written information about the charity they represent, hang up the phone and do some research on your own. Once you feel comfortable with the charity, send the organization a check directly in the mail, thus ensuring 100% of your gift goes to the charity and not the for-profit fundraiser.
• Make sure that your donation is tax-deductible.
  
  Before giving a donation to any organization, make sure it is a 501(c)(3) charity. That means the group has filed paperwork with the Internal Revenue Service (IRS), registering it as a U.S. nonprofit and enabling its contributors to take a tax-deduction for their gifts. A quick way to confirm the organization's status is to check with the IRS.
• Research the charity before you give.
  
  Take a look at the organization's finances. Make sure it is able to direct at least 75% of its budget on the programs and services it exists to provide. With a million nonprofits in America, you should have no problem finding one that matches your philanthropic interests and will put your donation to good use.
• Send your donation directly to the charity.
  
  Never divulge your personal or credit card information to those initiating contact. Once you've done your research, send your contribution directly to the charity you wish to support. Don't send cash as it can be lost or stolen. Also, you'll want to have paid by check or credit card so you have a receipt of your donation when it comes time to take the tax-deduction.
• Tell the charity not to share your personal information.
  
  When you send a charity a small donation- say $10 or $25- there is a high probability that the organization will then sell or trade your contact information with other charities. The next thing you know, your mailbox is overflowing with solicitations. Often older Americans get caught up in this vicious cycle because they respond with a small donation to each new appeal full of heartbreaking photos. To prevent this from happening, tell the charity upfront that you do not want it to share your personal information with any other entity.

What To Do When A Charity Calls

1. Find Out Who's Calling
   
   Many phone calls soliciting charitable donations come from for-profit professional telemarketers that keep a sizable portion of your donation for themselves and don't really care about the cause they're promoting. Find out if the person with whom you are speaking works for a telemarketing company or is a volunteer or employee of the charity itself.
2. Ask Where Your Donation Goes
   
   Professional, for-profit telemarketers typically negotiate their fees ahead of time and know exactly how much of every dollar raised goes to the charity and how much stays with the telemarketer. Companies often charge the charity 20 to 90 cents of each dollar raised. Ask the person on the other end of the line to tell you how much of your donation will actually end up with the charity. By law, they must tell you.
3. Get It In Writing
   
   Ask the person calling to send you a copy of the charity's annual report or a brochure describing its mission and accomplishments. Effective and efficient charities are proud of their accomplishments and are able to provide written materials describing their mission, program accomplishments, and financial information.
4. Do Some Research
   
   Begin by checking to see if the charity contacting you is reputable. Online charity watch groups provide clear, objective, and reliable assessments of the financial health of charities. Givers can be confident that in supporting those charities rated highly, they will be supporting organizations that are fiscally responsible and financially healthy. If someone contacts you soliciting a donation for a charity that you can't find any information about online you can request a copy of the organization's IRS form 990. Federal law requires nonprofit organizations to provide their last 3 IRS form 990s (tax returns) and their IRS form 1023 (application for tax exemption) within 30 days of your request.
5. Eliminate The Middleman
   
   If you determine that the telemarketer is calling you on behalf of a charity that you wish to support, contact the charity and find out how to donate to it directly. That way you avoid having part of your donation taken by a for-profit company.

How To Stop Solicitations By Mail

• Only donate to charities with a demonstrated commitment to donor privacy.
  
  To help you determine which charities are committed to protecting your privacy make sure to read the charity's donor privacy policy. A charity should have a written donor privacy policy that states it will not to sell or trade the personal information of its donors. In addition, the policy should be prominently displayed on the charity's website or in its marketing and solicitation materials.
• When you make a donation, make sure you 'opt-out.'
  
  Of all the charities reviewed, many have 'opt-out' policies. If this is the case you, as a donor, know that you must tell the charity that you wish not to have your personal information distributed to any other entity. Depending on the charity, you can 'opt-out' either by calling, writing or clicking a button when making an online donation.
• Register with the Direct Marketing Association.
  
  Through the Mail Preference Service program, the DMA maintains a list of individuals that do not wish to receive unsolicited mail. While this may sound like the answer to your prayers, it has two major drawbacks. First, you must specify that you do not wish to receive solicitations from both commercial and charitable organizations. If you fail to do so, DMA will automatically place your name on the list provided to for-profit entities only. Secondly, there is no regulation that mandates charities or corporations to use this list. Therefore, you will continue to receive mail from organizations that do not subscribe to this voluntary program.
• Call or write the charity directly.
  
  Contact the charity that sent you the solicitation and ask to be removed from their mailing list. Additionally, ask for the contact information of the organization that sold them your name- the source of your troubles. Then contact that organization to request that it too refrain from selling or trading your personal information. Be sure you have the appeal letter on hand in case the charity needs specific information from it in order to locate your name in its records.
  
  Even if you plan to support a charity that sends you too frequent mailings, we recommend that you contact the charity and let its staff know of your giving plans. Will you donate once a month, once a quarter, or once a year? Responsible and well-run charities will welcome your call. They prefer to have donors that they can depend on to give without having to be reminded. This helps the charity improve its fundraising efficiency and ultimately dedicate more time and resources towards the programs you wanted to support in the first place.
• Refrain from giving small donations to many charities.
  
  The quickest and most surefire way to wind up on mailing lists is to make lots of small charitable donations. Small donations, such as $25, barely cover the costs the charity incurred in soliciting the gift. To recoup those costs, many charities will simply sell the donor's name to another charity doing similar work.
  
  Charities obviously tend to be much more protective of donors that give large gifts. The charitable marketplace is crowded with many charities pursuing similar missions. Since the majority of donations come from individuals and not foundations, corporations or the government, charities are in competition with each other for your donation. A charity would never divulge a mid- to high-level donor's personal information to another charity. The revenue it could generate by selling the donor's information simply doesn't outweigh the risk of losing that donor to the other charity. If you've taken the time to find an efficient and effective charity whose work in which you believe, then it shouldn't be too difficult for you to decide to concentrate your giving on that charity instead of spreading your money around to many charities with whom you are less familiar.
• If all else fails, give anonymously.
  
  Take advantage of Network For Good's online giving system . Their system offers the option of giving anonymously.

Protecting Yourself From Online Scams

• Do Not Respond To Email Solicitations
  
  Unless you've signed up to receive a charity's electronic communications, be skeptical of email solicitations. Although you may receive an email that appears to come from a valid organization, as a general rule legitimate organizations do not solicit funds through email. Despite how official an email may seem it could very well be a scam. Many scams use the names of actual organizations and include a link to a website where you can make a donation. Do not follow any links within the message; these tend to be fake websites that are made to look like the organization's official site. Email solicitations may also include information about a foreign bank account where you can send your contribution. An organization requesting that you send funds to a foreign bank is always bogus.
  
  If you are interested in donating to the charity mentioned in the email, initiate contact directly with the organization. Type out the organization's web address or call them directly. This will ensure that you have reached the organization for which you intend to make a donation.
• Delete Unsolicited Emails With Attachments
  
  Never respond to unsolicited emails, commonly referred to as SPAM. Do not open any attachments to these emails even if they claim to contain pictures of a particular tragedy. These attachments are probably viruses.
• Be Leery Of People That Contact You Online Claiming To Be A Victim
  
  Anyone alleging to be in this position is most likely part of a scam. People affected by a disaster or afflicted by a disease are in no position to contact you directly for assistance.
• Seek Out The Charity's Authorized Website
  
  The results of a general web search on Google, Yahoo or another search engine may include a fraudulent site designed to look like a legitimate charity's website. For example, even before Hurricane Katrina made landfall, criminals were setting up websites that included the keyword Katrina (such as www.katrinahelp.com and www.katrinarelief.com) in an effort to collect money and personal information. In the weeks following the devastating storm, the FBI reported that it had identified over 4,000 bogus websites that were attempting to capitalize on the goodwill of generous Americans.
  
  So, how can you determine if a site is valid? Start by examining the web address. Most non-profit web addresses end with .org and not .com. Avoid web addresses that end in a series of numbers. Also, bogus sites often ask for detailed personal information such as your social security, date of birth, or your bank account and pin information. Be extremely skeptical of these sites as providing this information makes it easy for them to steal your identity.
• Give Through A Reputable And Secure Service
  
  Don't be afraid to make a donation. Each year millions of dollars in online contributions make it safely to charitable organizations. As always, make sure that you're giving to an established, reputable organization.

Tips For Giving In Times Of Crisis

• Give To An Established Charity
  
  Don't let an unscrupulous charity take advantage of your goodwill. Find a charity with a proven track record of success with dealing with the type of disaster and in the region in which the disaster occurred. Avoid fly-by-night charities created specifically to deal with the new crisis. Even well-meaning new organizations will not have the infrastructure and knowledge of the region to efficiently maximize your gift. If you do feel compelled to give to a new charity, be sure to get proof that the group is in fact a registered public charity with 501 (c) (3) status.
• Designate Your Investment
  
  Worried that your donation will go towards the charity's general operating fund or saved for a future crisis? This is a very understandable concern. Many charities do encourage donors not to designate their gifts so that the charity can decide how best to utilize the money, but depending on your confidence in the charity's ability to make that determination, you may choose to tell the charity exactly how to use your investment. By designating your gift, you'll ensure that your donation will be used as you intended. Most charities with online giving portals offer a check box feature so that you can tell the organization how to spend your contribution. If you are mailing in a check, then write a note in the memo section of the check specifying that you want your gift spent entirely on the current crisis.
• Avoid Telemarketers
  
  Be wary of fundraisers who pressure you to make a contribution over the phone. Never divulge your credit card information to someone soliciting you via the phone. Instead, ask the fundraiser to send you written information about the charity they represent and do some research on your own. Once you feel comfortable with the charity, send the organization a check directly in the mail, or give through their website, thus ensuring 100% of your gift goes to the charity and not the for-profit fundraiser.
• Research And Follow Up
  
  As always, take the time to find a charity you can trust. Use the internet to search for financially healthy charities to support. And be sure to follow up with the charity in a few months to find out (a) how your donation was put to use and (b) if the organization needs additional support to complete the recovery effort.
• Give Online
  
  The inherent speed of online giving provides instant gratification to donors and offers charities immediate access to much needed funds.

7 Questions To Ask Charities Before Donating

Tips For How To Investigate A Charity's Results

1. What is the charity's commitment to reporting results?
   
   Look for a clear statement identifying a methodology for monitoring results. And when looking at the results, check to see if the charity reported the time period that covers the results, if the results are related to the charity's mission and if there are results from a prior time period. Finally, see if you can identify a means by which the charity validated the reported results.
2. How does the charity demonstrate the demand for its services?
   
   Here you want to see that the charity can show both a demand for and a utilization of its programs and services.
3. Does the charity report its activities (what it does)?
   
   Check to see if the charity offers information about its mission-related activities, if it provides the data in comparison to a prior time period and if it shows the costs affiliated with each of those activities.
4. Does the charity report it outputs (immediate results)?
   
   Apply the same concepts in #3 to outputs by checking to see if the charity offers information about its outputs (immediate results flowing from the activities it does), if it provides the data in comparison to a prior time period and if it shows the costs affiliated with each of those mission-related outputs.
5. Does the charity report its outcomes (medium- and longer-term results)?
   
   Here donors should check to see whether the information provided by the charity shows progress towards an outcome - a measurable change resulting from activities and outputs over the medium and longer-term.
6. What is the quality of evidence for reported results?
   
   Check to see if the charity has provided any evidence (such as case studies, beneficiary feedback, third-party evaluation) for its reported outputs and outcomes.
7. Does the charity adjust and improve in light of its results?
   
   However difficult or easy it is to collect and publish results data, the acid test for charities is how they use the data. Charities that consistently learn and improve usually have good outcomes.

Tax Benefits of Giving

• A gift to a qualified charitable organization may entitle you to a charitable contribution deduction against your income tax if you itemize deductions.
  
  If the gifts are deductible, the actual cost of the donation is reduced by your tax savings. For example, if you are in the 33% tax bracket, the actual cost of a $100 donation is only $67 ($100 less the $33 tax savings). As your income tax bracket increases, the real cost of your charitable gift decreases, making contributions more attractive for those in higher brackets. The actual cost to a person in the lowest bracket, 15%, for a $100 contribution is $85. For a person in the highest bracket, 35%, the actual cost is only $65. Not only can the wealthy afford to give more, but they receive a larger reward for giving.
• A contribution to a qualified charity is deductible in the year in which it is paid.
  
  Putting the check in the mail to the charity constitutes payment. A contribution made on a credit card is deductible in the year it is charged to your credit card, even if payment to the credit card company is made in a later year.
• Most, but not all, charitable organizations qualify for a charitable contribution deduction.
  
  You can deduct contributions only if they are made to or for the use of a qualified recipient. No charitable contribution deduction is allowed for gifts to certain other kinds of organizations, even if those organizations are exempt from income tax. Contributions to foreign governments, foreign charities, and certain private foundations similarly are not deductible. Below, you can view a list of organizations for which your donations can be deducted.
  
  An organization could lose its charity status if it devotes a substantial part of its activities to formulating propaganda or otherwise trying to influence legislation. However, an organization, other than a church, may qualify as a charity and still perform some of these activities by keeping its political expenditures to an "insubstantial" part of its activities. Furthermore, donations to needy individuals are not deductible.
• There are limits to how much you can deduct, but they're very high.
  
  For most people, the limits on charitable contributions don't apply. Only if you contribute more than 20% of your adjusted gross income to charity is it necessary to be concerned about donation limits. If the contribution is made to a public charity, the deduction is limited to 50% of your contribution base. For example, if you have an adjusted gross income of $100,000, your deduction limit for that year is $50,000.
  
  The rules on 20% limits and 30% limits are way too complicated to delve into in this space. If you are giving to organizations other than those mentioned above, first consult with your tax adviser to determine whether these other ceilings will apply. If you give an amount in excess of the applicable limitation to charity in one year, the excess is carried over for the next five years.
• Rules exist for non-cash donations.
  
  If you contribute property owned for more than one year, the value of the deduction is normally equal to the property's fair market value. You have an advantage when you contribute appreciated property because you get a deduction for the full fair market value of the property. You are not taxed on any of the appreciation, so, in effect, you receive a deduction for an amount that you never reported as income.
  
  You should clearly contribute, rather than throw out, old clothes, furniture and equipment that you no longer use. However, bear in mind the condition of your donated goods. The IRS only permits deductions for donations of clothing and household items that are in "good condition or better."
  
  If you bring $1,000 in clothes or furniture to Goodwill or the Salvation Army, make sure that you get a receipt. Never throw such contributions into a bin where no receipt is available. If you are in the 25% bracket, that receipt may be worth $250 in tax savings to you. And remember that the IRS requires a qualified appraisal to be submitted with your tax return if you donate any single clothing or household item that is not in good used condition or better, and for which you deducted more than $500.
• Remember to document.
  
  No deduction is allowed for a separate contribution of $250 or more unless you have a written confirmation from the charity. A canceled check alone is not enough. If the contribution is to a religious organization solely for an intangible religious benefit (annual dues, for example) written proof is still required. All other contributions of cash require the charity to estimate the fair market value of any goods or services given to you in exchange for your contribution.
  
  Starting in 2007, the IRS requires written documentation to substantiate deductions for all monetary donations - including cash. In case of an audit, you must have a canceled check, credit card statement or a written acknowledgment from the charity (showing the charity's name, the date of the donation and the amount given). You will no longer be able to deduct those few dollars you dropped in a charity's collection bucket without a receipt from the charity to back up your claim.
• Organizations to Which You Can Give and Deduct Your Donation
  
  You are generally allowed a 50 percent ceiling on your adjusted gross income for contributions if they are any of the following organizations:
  
  1. Churches and other religious organizations;
  
  2. Tax exempt educational organizations;
  
  3. Tax exempt hospitals and certain medical research organizations;
  
  4. A government unit, such as a state or a political subdivision of a state;
  
  5. Publicly supported organizations such as a community chest;
  
  6. Certain private foundations that distribute all contributions they receive to public charities within two-and-a-half months after the end of the foundation's fiscal year;
  
  7. A private operating foundation which pools all of its donations in a common fund;
  
  8. Certain membership organizations that rely on the general public for more than a third of their contributions.

Guide To Donating Your Car

You Don't Have to Write a Check to Help

1. Find a Charity That Directly Accepts Car Donations
   
   If at all possible, avoid the for-profit intermediary organizations that advertise so pervasively to handle your car donations. When you work with one of these organizations, they keep the vast majority of the dollars created from your donation. Even the most reputable of the agencies that handle these transactions keep nearly 50% of the car's value for their troubles (other, less scrupulous entities keep 90%, or even more). If you can find a charity that handles the transaction themselves, they can keep 100% of their profits. It's possible that the charities you already support have a car-donation program that you don't know about. Check with them first.
2. If Your Charity Doesn't Accept Cars, Take the Time to Find a Charity That Does, and Still Does Work You Respect
   
   Remember that you're still making a charitable donation, and don't simply give your automobile away to any charity, just because they're a charity. Do a little research, and find a high-performing charity that does the kind of work you like, in the region you wish to target, and does that work well.
3. If It Runs, Drive the Car to the Charity
   
   Worthy charities are going to have to pay someone else to handle a pick-up or a tow. This is yet another cost that cuts into the amount that gets to that organization's programs. If you can get the car to them yourself, do it.
4. If You Have to Use a Intermediary Agency, Research the Percentage that Gets to Charity
   
   The IRS does not require the car donation agencies to contribute a set amount of the auto's proceeds to the intended charities; that amount is negotiated between the charities and the handlers. Try to find an agency that maximizes that amount, and call the charity to confirm that number before you give. The charities are reluctant to criticize the middlemen, because they don't want to lose the dollars they do receive, but state attorney generals are beginning to investigate and even prosecute these for-profit middlemen, for holding themselves out as charities and misleading the public on the amount that is actually reaching charitable causes.
5. Make Sure Your Intended Organization is a 501 (c) (3)
   
   While many organizations can claim non-profit status, donations to 501 (c) (4) organizations are generally not tax-deductible. These are political organizations with permission to lobby our government; like Disabled American Veterans or the National Rifle Association. Make sure your intended recipient has 501 (c) (3) public charity status.
6. Transfer the Car Correctly to the Charity
   
   Some charities will ask you to leave the assignment of ownership space on the charity donation papers blank, so they don't have to re-title the auto. If your charity asks this of you, find another charity. If you don't formally sign your car over to the designated nonprofit, you will be held responsible for any parking tickets that are subsequently incurred, or liable if it's used in a crime. Remember, the charity you give the car to will probably not use your car to deliver meals to the needy, but will simply sell it as quickly as possible. When someone buys it from them at auction and doesn't bother to register that car, it's still yours in the eyes of the law.
7. Value Your Car Correctly
   
   Due to the proliferation of car donations, the IRS became increasingly concerned about how taxpayers valued the vehicles they donated to charity. Over the last few years, the agency stepped up their audits in this area and began to advocate for changes to the laws that govern such deductions. With the passage of the American Jobs Creation Act of 2004, those changes have come. After your 2005 tax return, you are no longer able to deduct the published fair market value of vehicles worth more than $500. Under the new rules, your deduction will be determined once your car is sold and the charity sends you a receipt indicating the exact amount your car garnered at auction.
8. Complete Your Paperwork
   
   If your car is worth more than $500, you must complete IRS Form 8283 and attach it to your yearly taxes.
9. Use Fair Market Value (FMV) for the Car
   
   There are several exceptions which allow you to use the Kelley Blue Book or a NADA guide, but you must use the FMV, not simply the highest value listed for the year and make of your car. Use the FMV when:
   
   * instead of selling the vehicle, the charity keeps and uses it,
   * the charity makes improvements to the car before selling it,
   * your car is sold at a discounted price to a person with a low income,
   * or if the car is worth less than $500.
   
   And remember to always get a receipt when you donate the car. Again, the IRS is watching this area very closely.
10. Take the Time to Get It Right
    
    It is true that the biggest winner in the car donation game is usually the donor, and not the charity recipient. But if you take your time, ignore the quick and easy television appeals, and find a reputable, high-performing charity that will make the most of your donation, we can all emerge victorious.

Guide to Donating Noncash Items

1. Step 1: Determine whether or not the items you wish to donate are useful.
   
   Most charities can only make use of items that are new, unused, or nearly new. If you don't have any use for your old, tattered couch, rusty washing machine, or other used item, chances are neither will a charity. Similarly, a timeshare that has turned out to be a bad investment for you won't do much to help out a worthy charity. If you think that the items you wish to donate may be of use to someone else proceed to Step 2.
2. Step 2: Consider selling your items and donating the proceeds to charity.
   
   By donating cash instead of goods you allow charities greater flexibility in spending the money so that it reaches the people or animals that need it the most. When you sell the items yourself you also eliminate the for-profit middleman that can take a big cut of the money intended for charity. When you sell the items yourself you also unburden charities of any time and money they would have to spend on selling or refurbishing the items, allowing them to spend more resources directly fulfilling their missions. Finally, by selling the items yourself, you know the exact value of the donation you can report to the IRS and don't have to worry about estimating the amount for your tax returns.
   
   Online auction sites such as eBay or classified ads such as craigslist are good places to sell your new and used items. You could also get your friends and neighbors together for a multi-family garage sale, and donate the proceeds to a local charity. Whether or not you decide to sell your items and donate the cash, or you still think your items may be of use to a charity in need, proceed to Step 3 to find the right charity to accept your generous support.
3. Step 3: Start locally to find the right charity.
   
   In order to avoid transportation costs that can lower the impact of your donation, look first in your local community to find a charity to support with your non-cash contribution. Call around and ask charities if they accept the kind of items you are looking to donate, and if they don't find out if they have any suggestions of a charity that does.
   
   You can use the internet to find a charity in your local area that might be interested in donated goods by using the search feature and searching for charities within your state, city, or within a set radius from your zip code. Once you see a few efficient charities that you think may be interested in your donated goods you can use the contact information provided on their page to discuss with them how you might be able to arrange such an donation.

Guide To Volunteering

Spend some time researching charities before you invest your time helping their endeavors

• Identify charities that match your charitable interests
  
  Similar to making a giving decision, you should begin your research by determining what it is you want to accomplish and identifying charities that work to achieve those goals. Use the internet to create a list of charities that match your interests and are located near your home.
• Examine their financial health
  
  Maybe you feel most comfortable donating your time to a charity that is fiscally efficient. Or maybe you see an opportunity to help a charity whose revenue hasn't grown as quickly as the need for its programs and thus could really use an infusion of volunteer assistance until it can hire more staff. Either way, good research will provide the insight you need.
• Evaluate their programs
  
  Once you are satisfied with the organization's finances, invest some time exploring the charity's programmatic successes. Weed out those that can't clearly communicate their mission, goals, accomplishments and challenges. Continue to examine their work until you are left with a list of exceptional charities for whom you'd be proud to work.
• Quantify and qualify what you can offer
  
  Finally, contact your list of potential charities to asses their volunteer needs and determine if your skills match those needs. With three in five charities having a paid volunteer coordinator, don't be surprised if you are asked to stop in for an interview. You may even be required to undergo extensive training once you are accepted into their program. Thus it is a good idea to conduct a self-assessment to ascertain your personal goals before you run off to meet with the charity. Be sure you can answer the following questions:
  
  * How much time can I realistically give in a week, month or year?
  * What days of the week and time of day am I available to volunteer?
  * What unique talents do I possess that would help this charity achieve its mission?
  * What tasks am I unable or not willing to do?
  * What do I hope to gain from the experience?
  o Do I want to develop a new skill set that would be transferable to the workplace?
  o Do I want to meet new people with similar interests?
  o Do I just want the gratifying feeling of helping?
• Make a commitment
  
  Once you identify a charity worthy of your time and are offered a volunteer position, it is important that you make a personal commitment to be there for that organization. Volunteers that show up late, cancel at the last minute and produce limited results encumber the charity, costing it money and preventing it from fulfilling its mission. A reliable volunteer with a strong work ethic can go a long way towards helping a charity meet its goals. Remember the organization has made an investment in you and is depending on you to produce a return.

Guide To Giving In The Workplace

1. Examine your values to determine which causes you want to support.
   
   Workplace giving campaigns are user-friendly in part because they offer lots of choices. Employees have the option to contribute to all the participating charities or to designate their donation to specific charities. Therefore, before you participate in your employer's workplace giving campaign, you'll need to reflect on the issues you feel are most crucial. Whether you're concerned about the environment and believe the ocean needs to be cleaned up, or worried about the well-being of individuals in your community and want to support a local food bank, you should have plenty of choices that reflect your personal beliefs and values.
2. Review your personal finances to determine how much you can afford to give.
   
   Once you've honed in on your charitable interests, you'll need to review your personal finances and set some giving goals. In general, it is estimated that average annual giving is 3.2% of income. Apply this percentage to your annual income and see if you are comfortable with that level of giving. Even better, break it down per pay period so you'll know exactly how much will be deducted from each paycheck. You might be surprised to find out you can afford to give more than you thought.
   
   After you've calculated how much to contribute, you'll need to remember a few rules in order to maximize the tax benefits of your gift. Payroll deduction is convenient in that you do not need an acknowledgement from the charity to claim your tax deduction. There is however one exception to this rule. If you contribute $250 or more from a single paycheck, then you must prove to the IRS that you (a) made the donation and (b) you didn't receive anything in return for that donation. Simply keeping a copy of your pay stub fulfills the first requirement. To comply with the second, you'll need a pledge card or other documentation from the charity specifically stating that you did not receive any goods or services in return for your gift.
3. Learn how the participating charities were pre-screened and back it up with your own research.
   
   Not all workplace giving campaigns use the same criteria for selecting charities. Some simply compile a list of all the charities providing services to your community. Others restrict eligibility to those charities that have met general financial standards. Still others limit participation based on the charity's missions.
   
   Thus, the charities provided to you may not necessarily meet your giving standards. It is up to you to conduct a review of each charity's programmatic and financial accomplishments. Start your research by using the internet to quickly review the financial health of America's charities. Look for those charities that are efficient fundraisers, spend a high percentage of their budget on programs, are steadily growing their revenue and programs over time, and have enough liquid assets on hand to survive a crisis. Then, either explore the charity's website or give them a call to learn more about the organization's mission, goals and accomplishments. Good charities will be eager to share their successes with you.
4. Find out what percentage of your donation is going to the charities you've chosen.
   
   Just as individual charities exhibit different levels of efficiency, so do the fundraising charities that run workplace giving campaigns. Since these organizations exist to channel your money to other charities, they should spend more on programs and less on overhead as compared to other types of charities. In fact, research shows that the median fundraising charity spends 84% on its programs and only 6% on administrative expenses. Comparatively the median charity evaluated spends 80% on programming and 10% on administrative expenses. So before you contribute, make sure that your workplace giving campaign is efficient at funneling donations to the charities it is in business to support.
5. Maximize the amount of money going to charity by reviewing your employer's matching program.
   
   Many employers will match charitable donations made by their employees throughout the year. Often employers extend these matching programs to include gifts made through workplace giving campaigns. It is important for you to inquire about your employer's matching criteria so that you can maximize the impact of your donation. For example, some employers double the impact of a donation by matching each dollar. That means if you can only afford to give $500, the charity actually receives $1,000. Once you understand your employer's matching plan, you can make the most of your workplace giving campaign and maximize the level of funding your favorite charities receive.
6. At the end of the year, find out how your donations were put to use.
   
   You've taken the time to identify a well-managed, responsible charity that works to solve the issues that are most important to you. Over the course of the year you've invested your hard-earned money to support that charity's mission. Now it's time to take stock of that charity's accomplishments. Find out what successes the charity had during the year by reviewing the charity's website, reading its annual report or directly communicating with the charity. Be sure to also inquire as to what challenges the charity expects to face over the coming year.
   
   After you're satisfied with your favorite charity's progress, be sure to continue your commitment to its work. Renew your financial support through your employer's annual workplace giving campaign, making sure your contribution qualifies for your employer's matching program. As you learn more about how your donation advances the charity's mission, you might even be motivated to increase your involvement in the cause by donating your time. Charities play a vital role in our communities and they need both financial donors and volunteers to help them succeed in making our country a better place to live.

Giving Statistics

• Total giving to charitable organizations was $303.74 billion in 2009 (about 2% of GDP). This is a decrease of 3.6% from 2008 when giving was $315.08 billion.
• As in previous years, the majority of that giving came from individuals--$227.4 billion (75%). Giving by individuals dropped 0.4%.
• Giving by bequest was $23.8 billion (down 23.9%), foundations gave $38.4 billion (down 8.9%), and corporations donated $14.1 billion (up 5.5%).
• 33% of all donations go to religious organizations --$100.9 billion (down 0.7%). Much of these contributions can be attributed to people giving to their local place of worship. The next largest sector was education with $40 billion (down 3.6%).
• Here's how the other categories of charities performed: gifts to international charities grew 0.6% ($13.3 billion), donations to human services charities increased 2.3% ($27 billion), giving to animal and environment charities charities increased 2.3% ($6.15 billion), giving to health charities increased 3.8% ($22.5 billion), ), giving to arts, culture and humanities organizations decreased 2.4% ($12.3 billion), and giving to public benefit charities declined 4.6% ($22.8 billion.

10 Charities in Deep Financial Trouble

1. Hale House
   Working Capital $-8,486,776
2. Agape Villages
   Working Capital $-3,938,836
3. Baltimore Symphony Orchestra
   Working Capital $-3,346,103
4. Neighborhood Housing Services of Chicago
   Working Capital $-2,385,102
5. Children's Hospital Foundation
   Working Capital $-1,789,941
6. California Center for the Arts, Escondido
   Working Capital $-1,635,186
7. Nora Lam Chinese Ministries International
   Working Capital $-1,121,025
8. Heart Support of America
   Working Capital $-967,746
9. HomeWord
   Working Capital $-706,393
10. Iditarod Trail Committee
    Working Capital $-627,130

10 Charities Routinely in the Red

1. Project GRAD Atlanta
   Ratio- 72.6%
2. Family Radio
   Ratio- 52.2%
3. Americans for the Arts
   Ratio- 48.4%
4. SPCA Wildlife Care Center
   Ratio- 46.1%
5. Palm Beach Opera
   Ratio- 46.0%
6. VH1 Save The Music Foundation
   Ratio- 45.6%
7. East Lake Foundation
   Ratio- 42.4%
8. The Omaha Home for Boys
   Ratio- 42.2%
9. American Institute for Economic Research
   Ratio- 41.9%
10. National Ataxia Foundation
    Ratio- 40.6%

10 Highly Paid CEOs at Low-Rated Charities

1. Fine Arts Museums of San Francisco
   Salary- $365,132
2. Chicago History Museum
   Salary- $319,683
3. Zionist Organization of America
   Salary- $315,385
4. Quebec-Labrador Foundation
   Salary- $303,113
5. Chapin School
   Salary- $302,257
6. George Bush Presidential Library Foundation
   Salary- $289,308
7. The Parrish Art Museum
   Salary- $268,235
8. Stan Hywet Hall & Gardens
   Salary- $266,027
9. Washington, D.C. Martin Luther King, Jr. National Memorial Project Foundation
   Salary- $265,085
10. Hampton University
    Salary- $262,164

10 Highly-Rated Charities with Low Paid CEOs

1. Beyond Borders
   CEO Salary- $37,646
2. Green Corps
   CEO Salary- $39,508
3. Humanitarian Service Project
   CEO Salary- $41,750
4. Humane Society of Pulaski County
   CEO Salary- $43,464
5. Kids In Need Foundation
   CEO Salary- $43,500
6. Citizens for Animal Protection
   CEO Salary- $46,000
7. Adventist Southeast Asia Projects
   CEO Salary- $46,277
8. Missoula Food Bank
   CEO Salary- $48,246
9. All God's Children
   CEO Salary- $50,000
10. Winston-Salem Rescue Mission
    CEO Salary- $52,362

10 Charities Overpaying their For-Profit Fundraisers

1. Disabled Veterans Associations
   Program Expenses- 4.6%
   Professional Fund-Raising Fees- 94.3%
2. Children's Charitable Foundation
   Program Expenses- 10.3%
   Professional Fund-Raising Fees- 87.3%
3. Disabled Police Officers Counseling Center
   Program Expenses- 11.8%
   Professional Fund-Raising Fees- 85.7%
4. Firefighters Charitable Foundation
   Program Expenses- 10.2%
   Professional Fund-Raising Fees- 84.4%
5. Law Enforcement Education Program
   Program Expenses- 2.2%
   Professional Fund-Raising Fees- 84.1%
6. Operation Lookout
   Program Expenses- 12.6%
   Professional Fund-Raising Fees- 80.8%
7. Children's Charity Fund, Inc.
   Program Expenses- 5.6%
   Professional Fund-Raising Fees- 78.5%
8. Wishing Well Foundation USA
   Program Expenses- 10.3%
   Professional Fund-Raising Fees- 78.3%
9. Coalition Against Breast Cancer
   Program Expenses- 18.9%
   Professional Fund-Raising Fees- 75.9%
10. Defeat Diabetes Foundation
    Program Expenses- 14.5%
    Professional Fund-Raising Fees- 73.8%