5 Nonprofit Giving Tips

‘Tis the season for giving — and not just to friends and family. Area nonprofits receive the majority of their annual donations between October and December. Want to brighten the holidays for a northern Michigan charity? Here are five tips for making the most of your gift.

1. FIND THE RIGHT CAUSE

“Where your treasure is, there will your heart be also.” The proverb sums up a maxim in the nonprofit community: Donors tend to give most generously — and find the most meaning in their giving — when their gifts support organizations and causes about which they’re passionate.

“One easy first step is for people to identify what they’re interested in and what’s important to them,” said Program Director Joe Liszewski of NorthSky Nonprofit Network. “From there, people can look locally, statewide or nationally for organizations that fit those criteria.”

GuideStar (guidestar.org) and VolunteerMatch (volunteermatch.org) provide online databases that match donors or volunteers with organizations that align with their interests.

2. DO YOUR RESEARCH

Have you identified a charity or two that match your interests? Before you open your checkbook, do a little digging. Both GuideStar and Charity Navigator (charitynavigator.org) provide detailed nonprofit financial records that allow donors to learn how efficiently organizations are putting their dollars to work.

3. GIVE WHAT’S ACTUALLY NEEDED

When you’ve found an organization you’re comfortable backing, the next step is identifying how you can best support their cause. Executive Director Deb Noblett of Harbor Springs’ The Manna Food Project — which acts as a food bank for 35 partner agencies in Antrim, Charlevoix and Emmet counties — says a monetary donation is the single best gift most nonprofits can receive.

Liszewski agrees, noting that an unrestricted cash donation allows a charity to most effectively meet its goals. “If you have a high level of understanding with that organization, I certainly encourage people to trust its board of directors to make the best use of that financial gift,” he said.

For those who would rather donate physical goods, Noblett has several tips specific to food pantries. “Protein is really the greatest challenge, so canned meats are always in need: canned tuna, chicken and salmon, as well as things like peanut butter, beef stew and canned beans,” she said.

For those looking to donate used items like clothing, household wares, toys and small appliances, Goodwill Northern Michigan provides this advice: “A good general rule when deciding what to donate is give to Goodwill what you would give to a friend.”

4. TAKE ADVANTAGE OF TAX BREAKS

One key reason nonprofits see a dramatic uptick in end-of-year giving? Donors are racing against the clock to get in their tax-deductible donations by Dec. 31.

Olivia Adams, enrolled agent (EA) and owner at All Seasons Tax and Accounting Services in Elk Rapids and Charlevoix, says givers need to keep a key figure in mind: $250. If your total contributions for the year fall below that threshold, you aren’t required to keep receipts for your deductions, though you do need to carefully log the details of your donations. Once you hit the $250 mark, however — either cumulatively or with an individual gift — you’re required to obtain a written receipt from the organization stating the amount donated and/or a description of the donated goods for your records.

In terms of maximum deductions, “you can deduct up to 50 percent of your adjusted gross income level for the year,” said Adams. Contributions that exceed that ceiling can carry over to the next tax year.

Larger donations, such as cash gifts of $5,000 or more or high-value items like cars, come with separate reporting requirements and forms, so Adams recommends consulting with your tax preparer before making such gifts.

5. BUILD RELATIONSHIPS BASED ON GIVING

Not everyone can afford to donate to a charity. For those who can’t, or for those who yearn for a hands-on giving experience, time is just as valuable a gift. Volunteering for a nonprofit can help you build a relationship with that organization year round, providing a valuable support base beyond the holiday months.

“This is a time of the year when [giving] is on people’s minds for those tax deduction reasons, but organizations — and the missions and people they serve — have year-round needs,” said Liszewski. “If there’s a cause or organization you’re passionate about, get to know them. Stay involved like you would any other relationship.”

Building long-term nonprofit relationships can help turn your one-time donation into an ongoing contribution that makes a difference for charities in your community — truly a gift that keeps on giving.

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