Charity donations basics

Charity is perhaps the best feature of humanity. It is a perfect way to support the downtrodden. There are many types of natural and man-made evils in our society. So, there are variable causes for which the blessed ones can and should donate. Unlike before, nowadays there are numerous charitable institutions across the globes that are working in different areas. The main aim of a charitable organization is to help the people in need and work for their development. For instance helping in the rehabilitation of victims of natural disasters like famines, tsunami, earthquakes etc., working for prisoners of war or any oppressed community, child education, women upliftment and so forth are some different tasks taken up by these organizations. So, charitable organizations can variously be literary, religious, scientific and so forth. These organizations largely rely on government grants and the charities/ donations by the well-to-do section of society in order to function or continue with their respective social service. However, people may have different motives behind donating money in these charitable foundations. While there are those who contribute for the sake of human welfare there are others who do it to earn recognition and save tax. Tax wavier possibly is one of the foremost reasons at the moment that instigates many affluent people, multinational companies, and corporations to give money in these institutions. However, those who donate for the purpose of saving tax should keep in mind that every charity is not tax deductible. There are basically two types of non-profit organizations. 1. Charitable institutions that are exempted from paying taxes. 2. Institutions to which the donations made are tax-free. Such organizations are registered under the 501 (c)(3) category of the Internal Revenue Service. Once you make a donation to any such organization, get a receipt made as evidence to assist you in tax deduction. But besides enlisted in the 501 (C)(3) category, several other things about an organization should be considered before making a donation.