Will That Charity Use Your Money Well?

By Jordan Matus
ThirdAge News

The holiday season typically brings out the more generous side in all of us. Here's how to make the most of those impulses:

Make informed donations. Few things can choke off charitable urges faster than the realization your money was spent on advertising and office salaries.

Consult the Better Business Bureaus' Wise Giving Alliance for impartial information about any charity that solicits donations by mail or phone. The service allows you to check whether people have lodged complaints about an organization or if an organization meets 23 voluntary standards set by the BBB.

Think local. Donating to an organization in your area allows you to see the difference that your donation makes. Check out CharityAmerica, which allows you to pinpoint nonprofit organizations in your area.

Make a stock donation. Giving organizations the choice of a gift of stock has benefits for both you and the charity. Here's how it works:

If you own a stock that's appreciated from $1,000 to $2,000 over the last several years, selling it and giving the proceeds to charity will leave you with a capital gains tax bill. If you give the stock directly, however, you can still take the $2,000 charitable deduction, you don't get stuck with a tax bill and the nonprofit organization won't pay any taxes on the sale of the stock either, because it's tax-exempt.

Don't limit yourself to cash or stock donations. By logging onto the Internet, you'll find hundreds of sites devoted to charitable giving.

One of our favorites is America's Car Donation Charities Center, which allows you to donate a used or even non-working car to any of several dozen charities. Share the Technology has a National Computer Donation Database of nonprofit organizations that welcome used computer equipment.