3 Ways to Make the Most Out of Charitable Donations | First Volunteer Bank

While it’s a good feeling to receive presents during the holiday season, it can often feel even better to be the one doing the giving. If giving to charities is part of your holiday traditions, our team at First Volunteer Bank wants to offer some tips on how to do it the right way!

‘Tis the Season to Give!

Of course it feels good to be able to give during this time of year, whether it’s donating your time serving at the community kitchen or sponsoring an angel from the Angel Tree. However, with tax season approaching, you also want to make sure you’re getting the most of your year-end charitable contributions, too! Let’s talk about a few ways to do that.

First, you want to make sure you’re making a donation to a nonprofit. In order for the donation to qualify as a deductible charitable contribution, it must go to a charity that is considered a “qualified” charitable organization.

If you’re unsure whether the charity you’re wanting to donate to meets the requirements set, ask the organization for their letter of determination from the IRS. Most charitable organizations actually post this letter on their website.

Second, keep a spreadsheet of all the contributions you made, not only this month but throughout the year. By itemizing your charitable contributions, you are able to make sure the process runs more smoothly come tax season.

Finally, you want to make sure you receive a receipt, especially if you made a cash donation. If you’re unable to get a receipt from the organization in time, you can use a bank statement of a cancelled check to help verify the amount given, to what charity and the date it was made. If you made a donation via a paycheck, your pay stub should include the information needed during tax season.

If the donation you make is more than $250, you must obtain a letter of acknowledgment from the qualified organization. While most organizations are aware of these rules of receipt, it’s also important for you to know to ensure that your donation is handled in the best way possible—for the charities’ benefit and yours, too.

Are you looking to make a better contribution come December 2018? Visit First Volunteer Bank to learn how our savings account options can help make things easier when it comes to the season of giving next year.