End of year charitable contributions

[JonInMiddleGA]

I'm hoping that we can keep this civil, I just thought it might provide some good publicity for any personal favorite causes. While there's plenty of donations year round, the practical reality is that the end of the calendar year does spark another round of giving at times.

I'm sincerely hoping that we can avoid any controversy about taxation, motivations, or anything else that goes along with the subject of donations, including how some charities run their operations. There's a number of resources online, including http://www.give.org/ , and I recommend you check out any group to see if they operate to your personal satisfaction when giving. And if I can promise not to rip on anybody who happens to list the ACLU or PETA (just for examples) then surely everybody can play nice about whatever someone chooses to list. I'm not really thinking about doing "sales pitches" for our personal favorites, just a chance to point others to causes you believe are worthwhile & then let everyone decided for themselves.

Okay, disclaimer over

If you're looking for an organization to donate to, I ask that you consider the following:

LSU School of Veterinary Medicine
http://www.cvm.missouri.edu/news/donateLSU.htm

Mississippi State University College of Veterinary Medicine
http://www.cvm.msstate.edu/disaster_response.html

Atlanta Siamese & Persian Rescue
http://www.cat-rescue.org/index.html

The V Foundation for Cancer Research
http://www.jimmyv.org/

Beauvoir Jefferson Davis Home and Presidential Library
http://www.beauvoir.org/

National Trust for Historic Preservation "Team Tarp" project
http://member.nationaltrust.org/site...?store_id=3261

[Joe]

American Heart Association
http://www.americanheart.org

[st.cronin]

Not to threadjack but ...

Can somebody explain why the cutoff is Jan 1, and not April 1? I've never been able to understand that - it seems so random.

[JonInMiddleGA]

st. c -- if I follow your question correctly, it's because your April tax return is based on things that occurred between Jan 1 & Dec 31 (i.e. calendar year) not April 1 thru March 31.

Basically, you get 3 months+ to do the paperwork from the previous year.

[st.cronin]

Originally Posted by JonInMiddleGA

st. c -- if I follow your question correctly, it's because your April tax return is based on things that occurred between Jan 1 & Dec 31 (i.e. calendar year) not April 1 thru March 31.

Basically, you get 3 months+ to do the paperwork from the previous year.

Right - I know that. But if the idea behind charitable deductions is to increase charitable donations, then the deadline should be extended beyond Jan 1 into at least February so as to allow people to maximize their giving.

[Buccaneer]

Compassion International
http://www.compassion.com/

[JonInMiddleGA]

Originally Posted by st.cronin

Right - I know that. But if the idea behind charitable deductions is to increase charitable donations, then the deadline should be extended beyond Jan 1 into at least February so as to allow people to maximize their giving.

At the risk of sidebarring, all that would do is remove contributions from the following year (for tax purposes).

In other words, you can't perpetually "borrow" from the following year without eventually "paying it back" at some point (since there's a finite amount of time in each calendar year).

[Dutch]

Originally Posted by st.cronin

Right - I know that. But if the idea behind charitable deductions is to increase charitable donations, then the deadline should be extended beyond Jan 1 into at least February so as to allow people to maximize their giving.

But a year is year. If you extend to February, then you have to start the next year from February.

[miked]

Odd, because I think you can contribute to an IRA until the tax deadline, but really I guess it would make no difference. Oh well. Kudos to those that donate to the AHA, as that's where my funds come from

[John Galt]

This year, more than normal, I focused giving on Habitat for Humanity. Despite people's views of my politics, I've never contributed to the ACLU or any other political nonprofit. All of my giving usually goes to money for the poor and homeless, usually to Christian affliated charities.

[JonInMiddleGA]

Providing link for John Galt's suggestion:
http://www.habitat.org/default2.aspx

[lighthousekeeper]

st. cronin must be a ex-Enron accountant.


the only charity we give to is PETA.

[st.cronin]

Originally Posted by lighthousekeeper

st. cronin must be a ex-Enron accountant.

Well, I did used to be a licensed stockbroker.

[Airhog]

I do some volunteering at work through our CAC. However, this year the only donations I have made is to United Way.

[Farrah Whitworth-Rahn]

Originally Posted by st.cronin

Not to threadjack but ...

Can somebody explain why the cutoff is Jan 1, and not April 1? I've never been able to understand that - it seems so random.

The service likes to match up deductions individuals take to the income recognized by the charity. They don't like to have dangling deductions (my word) - deductions in one year with income recognition in the other. Since the bulk of individuals and charities are on a calendar year, cut off is December 31.

[Pumpy Tudors]

Originally Posted by JonInMiddleGA

I'm hoping that we can keep this civil

I admire your faith.

[st.cronin]

Originally Posted by Farrah Whitworth-Rahn

The service likes to match up deductions individuals take to the income recognized by the charity. They don't like to have dangling deductions (my word) - deductions in one year with income recognition in the other. Since the bulk of individuals and charities are on a calendar year, cut off is December 31.

Makes sense. I think they could work around that, though (perhaps by having a later filing date for charities). I don't really know for sure, but I assume that you would see a big bump in charitable donations by allowing deductible donations up til the filing date.

[Farrah Whitworth-Rahn]

Originally Posted by st.cronin

Makes sense. I think they could work around that, though (perhaps by having a later filing date for charities). I don't really know for sure, but I assume that you would see a big bump in charitable donations by allowing deductible donations up til the filing date.

For calendar year charities, their tax return due date is already May 15th. There needs to be a cut off somewhere.
And I disagree with the opinion that you'd see a big bump in contributions if you allowed people to do so up until April 15th. The effect on taxable income of a charitable contribution is not the same as say an IRA contribution. One is an itemized deduction, one is an adjustment to AGI. Adjustments to AGI lower TI more, and faster than itemized deductions.

If I were advising a client on an easy, fast and more advantageous way to reduce their tax liability, I'd push an IRA over a charitable contribution.

[st.cronin]

Originally Posted by Farrah Whitworth-Rahn

For calendar year charities, their tax return due date is already May 15th. There needs to be a cut off somewhere.
And I disagree with the opinion that you'd see a big bump in contributions if you allowed people to do so up until April 15th. The effect on taxable income of a charitable contribution is not the same as say an IRA contribution. One is an itemized deduction, one is an adjustment to AGI. Adjustments to AGI lower TI more, and faster than itemized deductions.

If I were advising a client on an easy, fast and more advantageous way to reduce their tax liability, I'd push an IRA over a charitable contribution.

The only problem I see with what you are saying is that IRA contributions are capped, so there obviously ARE situations where a charitable donation would reduce somebody's tax burden. I have no idea if there are any studies done that bear out what I am saying.

All of this is just my hyper-analytical way of suggesting that we should all give more, and that the government should encourage us to give more.

[Farrah Whitworth-Rahn]

Originally Posted by st.cronin

The only problem I see with what you are saying is that IRA contributions are capped, so there obviously ARE situations where a charitable donation would reduce somebody's tax burden. I have no idea if there are any studies done that bear out what I am saying.

All of this is just my hyper-analytical way of suggesting that we should all give more, and that the government should encourage us to give more.

Ahhh my dear St. Cronin, charitable coributions are capped as well. In many different ways. And of course there are situations where charitable giving could benefit people - but in my professional experience, the people who have the extra cash laying around to make contributions to reduce their TI have the cash to pay people like me to find better tax answers for them.

I had a professor once tell me that charitable contributions had no impact on taxpayer behavior. I think he authored a paper on it, but I haven't read it so take that with a grain of salt. It makes a bit of sense though - the people who give out of a sense to give back to the community probably wash out the people who give to get a deduction on their tax returns.

[Farrah Whitworth-Rahn]

Dola - We like The Salvation Army

[Galaxy]

[quote=JonInMiddleGA]


The V Foundation for Cancer Research
http://www.jimmyv.org/



Watching the Jimmy V basketball tournamet a few weeks ago, his speech which is played during the break of the two games is worth the donation alone.

[JonInMiddleGA]

Originally Posted by Farrah Whitworth-Rahn

Dola - We like The Salvation Army

Adding a link for She-Rahn's recommend of
The Salvation Army

[digamma]

At the risk of being accused of self-promoting, I'd offer the scholarship fund in memory of my dad and brother. Thus far, we've been able to endow the fund to ensure the scholarship is given for 20+ years (which is a long time), but I plan to be going back to Tucker when I'm 70 or so to present the award.

If your motivation is a 2005 year tax deduction (and I don't find fault with that), I'd probably pass on our small fund (the folks at Tucker do a fantastic job getting receipts and the like out to contributors, but the school offices are closed this week, and I can't guarantee when contributions would be processed), but I'd appreciate it if you might keep it in mind in the future.

http://www.coachvandbill.com/scholarship.htm

[sterlingice]

I give to my church but that's pretty much it for me. My wife gives to St Jude's.

SI

[Crapshoot]

I'd strongly reccommned Doctors Without Borders - whatever their politics, they have the lowest load ratio in the business, and they go to places (especially Africa) that others simply won't. In essence, they are working where it is needed the most.


www.msf.org I believe

[JeeberD]

The Leukemia & Lymphoma Society

[flere-imsaho]

I'm a big fan of Heifer Project. They give gifts of animals to folks around the world, and work with those communities to make sure that as those animals multiply, they are spread throughout the community. Basically: sustainability.

Also good is Oxfam. They're particularly good in the provision of clean water, which is a critical need both for poor areas, and disaster areas.

[Kodos]

If you like conservation groups, The Nature Conservancy and The Sierra Club are fine choices. Also, The World Wildlife Fund is nice, especially since they stuck it to The World Wrestling Federation.

[Grammaticus]

Here are a few site that are very good at evaluating charities. For those that are concerned about the validity or actual mission of various charities.

http://www.charitynavigator.org/

http://www.guidestar.org/

The first site rates charities on how efficient and responsive they are.

The second, lets you check out the legitimacy of the charity and if contributions are actually tax deductible. You can also check the charity's finances and mission. I believe it offers additional info on statistics and things like that for pay. the first part is free.

[Mustang]

[JonInMiddleGA]

Originally Posted by flere-imsaho

I'm a big fan of Heifer Project. They give gifts of animals to folks around the world, and work with those communities to make sure that as those animals multiply, they are spread throughout the community. Basically: sustainability.

Also good is Oxfam. They're particularly good in the provision of clean water, which is a critical need both for poor areas, and disaster areas.

I don't recall ever hearing of heifer.org before, very creative. Thanks for sharing that.

[JonInMiddleGA]

Thanks to everyone who has participated in this thread, whether by posting or reading.

And I found a new charity to contribute to from it, so I know for sure that at least one group benefitted from it a little bit.

[sterlingice]

Originally Posted by Crapshoot

I'd strongly reccommned Doctors Without Borders - whatever their politics, they have the lowest load ratio in the business, and they go to places (especially Africa) that others simply won't. In essence, they are working where it is needed the most.


www.msf.org I believe

My sister is big on them (she's in med school)- they do a lot of good work.

SI

[JeeberD]

Oh, and I forgot about this one. It's one of my personal favorites...

The JeeberD's Wedding Fund Association

Such a worthy cause. Donate $100 and I hear they send you a cookie!

[Eaglesfan27]

Originally Posted by JeeberD

Oh, and I forgot about this one. It's one of my personal favorites...

The JeeberD's Wedding Fund Association

Such a worthy cause. Donate $100 and I hear they send you a cookie!

I can't pass up a cookie!

[Eaglesfan27]

Originally Posted by sterlingice

My sister is big on them (she's in med school)- they do a lot of good work.

SI

I've also become a big fan of Doctors without Borders.