The IRS is a word that sends some people into fear. No one likes to pay taxes, but there is good news about the IRS. Did you know that the IRS is there to help protect you against charity scam organizations? It is true. There have always been laws and rules that help govern what a true charity is and is not, but there have been recent changes to these laws that help put more stringent regulations on charities. This is to help prevent just anyone from taking your money in the name of charity. When it comes time for you to hand over your donation, you will want to make sure that it is a true IRS tax exempt charity, as most of these organizations have more accountability than others.

What is a Charity?

By definition a charity is a group, or organization that is there to promote the public good. Charities are wonderful things and many people are ready to make donations to charities promising to do good in your community. However, it is important that just about anyone can advertise as a charity. This is a loose definition and could easily apply to the kid down the street selling lemonade to help raise money for a school project, or the local low income shelter in your neighborhood that helps assist families in need. However, by IRS definition, a charity has a much more tighter definition. When you talk about a charity in terms of the Internal Revenue Service, you are talking about a foundation or organization that collects goods and/or money in order to help others and one that has taken the necessary steps to become tax exempt from the IRS. These types of organizations have registered with the federal government under the Income Tax Act for charitable status. In addition, these are most often a religious, medical, educational or governmental institute that is exempt under the IRS code section 501(c)(3).

Are all Charities Made Equally?

You have a big heart, and whether you want to help the animals in need or children in need, you want to make sure that your charity dollars go where they need to go. You may wonder whether or not all charities are created equally. The answer to that is no—they are not all equal and when you want to give, you need to make sure that you are giving to an organization that is real. One thing you can do is to check their tax and IRS status. If you find a charity that is not a 501 tax exempt charity, chances are, they may be taking your money without helping anyone in need. True charitable status under the IRS definitions will allow you to know which charities are legal. In addition, these charities that are tax exempt have the ability to issue you are receipt for you to use as a tax deduction when you file your own taxes.

New Charities:

There are many big name charities that you have probably already heard of and that you know have a wonderful reputation. You can count on giving your donation to these organizations with no problems. But, how about new charities? While there are some scams out there, there are just as many new charities out there that are ready and willing to help others. You should never dismiss these organizations just because they may be new. In fact, many of these will have already applied for IRS status and you can actually contact the IRS to make sure that this new charity is in fact the real deal. You can even log on to the IRS website and sort through the various charities.

Kids love to help.  Children as young as toddlers like to be included when we're doing household chores and delight in doing something as simple as handing us something.  It makes them feel useful and valued, much the same way we feel useful and valued when we lend a hand to someone else.

The best way to ensure we raise children that will be giving adults is to teach them about giving when they are youngsters.  Even children who aren't yet old enough to receive an allowance can be taught to give to others in many different ways.  For example, when it's time to clean out their room of old toys, instead of simply boxing them up and giving them to Goodwill without the child knowing anything about it, we can involve them in the giving process.

When children receive new toys at Christmas and birthdays, we can take that opportunity to teach our children about giving by having them pick out an old toy to give away.  We can explain to them that some children don't have any toys to play with and ask them to pick out something they would like to give another child.  Once kids understand that they can make a difference, they are usually willing to help.

Another way we can teach our children about charitable giving is through monetary contributions.  Whenever we give our children allowances, we should take that opportunity to teach them about how to manage finances.  After all, if we don't teach our children how to manage money as they are growing up, how can we expect them to be responsible adults?  We also can't teach our children about money by simply talking to them or reading from a book; we have to supplement that teaching with practical experience and an allowance is an excellent opportunity for this.

Without any proper guidance, most children are going to immediately spend any amount of money we give them.  We may have to insist that certain guidelines be followed with regard to their allowance, but if we do this, after a while the child will be accustomed to it.  We can sit down with our children and apportion a certain amount for savings, a certain amount for spending, and a certain amount for giving.  If we allow our children to be a part of the decision-making process with regard to which worthy cause their money will go, they are far more likely to be willing participants.

For example, we can have two or three worthy causes or charitable organizations picked out and then explain to our children what kind of work the charity does, as well as who will profit from the donations and then let them make the final decision.  While children who don't even know the meaning of cancer may not be excited about setting aside part of their allowance for the American Cancer Society, they may be thrilled to contribute to Toys for Tots once they understand they can help other children get toys for Christmas.

As our children grow and mature, we can incorporate more and other types of charitable giving into our teaching.  We can teach them to give of themselves and their time, for example, by mowing the lawn for a shut-in, or cooking a meal, or a dozen other things they can help with as they grow older.  If we start teaching our children  the value of charitable giving while they are young, by the time they are teen-agers, they will be accustomed to giving and it will come much easier.  That's no reason, of course, not to start teaching them to give to others, regardless of their age, because it is never to late to teach compassion for others.

Wanting to support a charity is a noble thing but how do you know which charity is the right one for you to donate to when there are so many to choose from? Keep in mind that making a charitable donation should be a meaningful experience that is done from your heart and is a charity that is close to your heart for whatever reason. It is not how much you give that is important but the fact that you give with a kind and generous heart. For example many people make donations in memory of family members or friends who have passed on and the donations are made to a charity that the deceased person was very passionate about. This is very commonly seen in obituaries where it states that “in lieu of flowers” donations will be accepted to a given charity. The charitable gift should make a difference to the lives of both the giver as well as the organization that receives it.

In order to choose the right charity, consider your motivation. What makes it interested in giving to one particular charity as opposed to another? For a great deal of people this has to do with the fact that it has impacted the person’s life in some profound and very personal way. The right charity is one that shares your perspective or vision and its mission is very close to what yours is.

If your charitable gift will bring happiness, joy and pleasure to the donor of it then you have chosen the right charity. A donation should always have positive consequences to the charity it goes to and if you do not think it will then keep looking for another one. If you feel completely confident and fulfilled by the charity you have chosen and you have no insecurities or uncertainties or no nagging afterthoughts then you have chosen well and deserve a pat on the back.

Planning is also key to choosing the right charity. Time and effort play a role in the choice of the proper charity. You have to choose the right charitable gift for the right charity at a time when it will be needed the very most. Give planning a great deal of consideration when it comes to choosing the appropriate charity.

Remember that there is more than one way to give a charitable gift and this should figure into the charity that you choose to give your hard earned dollars to. Giving a cash donation is a simple and easy route to take that is favored by a great deal of people. Keep in mind that a cash donation can only be claimed on your income tax forms for the year it was given in. Bequests are another way to leave money to those you love or to make a donation to a charitable that is near and dear to your heart after you have passed on. A bequest is a gift that is left to an individual or charity in your will. 

Charitable gift annuities are another way to go. In its most basic definition a gift annuity is “a contractual agreement in which you transfer assets to a designated organization in exchange for an annuity.” By making a donation by way of a gift annuity what you do is you contract for a payment of fixed income for either yourself or for somebody else.

But gift giving does not end there. It can also take the form of a charitable remainder trust, a life insurance policy, real estate or securities. Whichever charity you decided to donate funds to always remember to do it from your heart and do not simply do it for income tax purposes. Look for the higher more humane purpose for giving and remember that you are not giving your money but you are giving of yourself as well.

In many parts of the world, AIDS is a serious health epidemic. Across the world, scores of people suffer from this life-threatening disease. Without proper medical care and education, the problem of AIDS only increases. It is estimated that over 40 million people from all over the world live with AIDS. Researchers believe that 2.5 million of these people are children under the age of 15. That is a staggering amount and these numbers continue to rise. While this is a problem all over the world, the most known region is Africa. This is partly due the fact that there is substandard medical care and education for AIDS patients in this part of the world.

You have heard of AIDS and you probably know a little about this disease. What you may not know though is that AIDS does not just affect people who are gay or drug users. This disease affects people all over the world, of all walks of life and of all ages. Even with the massive research efforts, it is still not enough to stop AIDS from spreading. What are needed are more research and more money. That is why there are many charities that are set up specifically to help fund research and to help victims all over the globe. If you have a favorite AIDS charity, get online to see if you can purchase products or ribbons that will help you show your support for this disease.Red is their choice of color and when you see someone sporting a red wristband or lapel ribbon, you know that he or she wants to help stop AIDS in its tracks.

What was once a deep, shameful secret, AIDS awareness is now in the limelight. Even high profile celebrities are getting in on the AIDS awareness bandwagon. You don’t have to be famous or rich to support AIDS. If you truly want to be part of the solution, you can easily sport red to show your support for this devastating disease.

One high profile name that has been fighting for AIDS research and funding is Bono, the lead man for the rock band U2. Over the years, he has teamed with other musicians and celebrities to raise money for AIDS awareness. Red is the color of the day and you can even buy the popular INSPI(RED) shirts and other apparel to help support AIDS. The Red brand products are very similar to the popular pink products that support breast cancer. You can buy red-themed products manufactured by well known brands such as Gap clothing, American Express and Converse shoes. You can buy everything from shoes, clothing, shirts, and even sunglasses. Even cell phone companies are catching on and are selling red cell phones to support the cause. In fact, some of these products are actually made and produced in Africa where HIV and AIDS is a major health concern. Every time you purchase Red products, a portion of the money will go directly to support HIV and AIDS research.

If you truly believe that AIDS research is something that you want to support, you have many options. Even if you don’t want a red cell phone, get online and check to see which companies are selling red products in support of HIV and AIDS. You might be surprised at the many things that you can purchase. In addition, you can’t go wrong with showing your support by wearing your favorite red t-shirt, ribbon or wristband. Let everyone know that you are educated and care about the plight of AIDS victims from all over the world. It is a worthwhile cause.

How do your educate your kids when it comes to charitable giving? Be aware that such lessons as kindness, generosity, compassion and selflessness do not come out of any textbooks and these lessons are often learned from the teachings of others closet to the children. It is important to develop a charitable spirit in your children from an early age in order that charitable giving will become an important part of their lives. Let us look at six winning ways to educate your kids about charitable giving.

Number One

The first way is to make sure you are a model parent who shows your children what the virtues of kindness and giving to your fellow human beings is all about. How will your child learn to be generous and kind if they do not observe you doing those things? Be an excellent role model and your children will learn from this. Studies have shown that children come to enjoy doing good for other people when they are able to observe their parents doing the same.

Number Two

Make sure your love for your children translates into action. Teach your children that with love comes the necessity for action and for responsibilities to both their families as well as people at large. Get involved in activities in your community, be they big or small and make sure your children are a part of them too so they will learn the value of giving back to the world.

Number Three

Teach your children about life’s many precious gifts that have no price tag before you teach them about monetary giving. For example teach your children about the gift of a smile, a hug, laughter, kind words and reaching out to hold someone’s hand. Teach your children the gift of encouragement, praise and support.

Number Four

Create opportunities for charitable traditions to be started within the family. There are many different ways this can be done and it is up to you to decide what will work best for your family. One suggestion is to divide up the allowance you give your children into thirds- designate one –third for their spending pleasure, one-third for their savings for future purchases and the final third for a charitable cause.

Number Five

Allow your children to have a say in what charity or charities you will donate to. Designate a certain time to sit down, as a family to discuss what charitable contributions will be made to where. Teach your children what it means to be a philanthropist. For example you might want to deem Thanksgiving Day as the day you decide what charities to donate money and/or time to in the upcoming year. 

Number Six

When your children show any type of charitable spirit or nature, encourage them and praise them. Praise your children for the kindness they show to others by the words you use to express how you feel about their thoughtful actions as well as giving them a great big hug. If your kids show an interest in a particular cause, whether it be something that is going on in the neighborhood, such as a food or clothing drive for a family whose home burnt to the ground or something on more of a global scale then teach them everything you know in words they can understand so that they will gain a greater understanding of how important it is to help others. You might want to take them to the library and teach them further if this is a subject that has captivated their interest. There are also plenty of websites you can go to with your child to learn more about the particular charitable cause that has got their attention.

You have seen all the ribbons that represent a wide variety of charities. You can show your true colors (or ribbons) of support for almost everything from AIDS awareness to breast cancer research. However, probably one of the oldest forms of ribbon support is the yellow ribbon. A yellow ribbon is the ultimate to show your support for your loved ones or friends fighting for the US military across the world. So whether you pin a small discreet yellow ribbon to your lapel, or fashion a large, beautiful ribbon around your old oak tree in your front yard, your yellow ribbon is showing that you love and support the US military troops.

History of the Yellow Ribbon:

You know that the yellow ribbon represents your loyalty and support for the military troops serving all across the globe, but have you ever taken the time to think about the history of the yellow ribbon? For some families with a strong background in the military, fashioning a yellow ribbon to the tree or door is a way of life. It shows that you care about the troops and are ready to welcome them home with open arms. Did you know that the original song, “Tie a Yellow Ribbon Round the Ole Oak Tree” that became popular in 1973, actually originated from a 1949 John Wayne movie? That song was called “She Wore a Yellow Ribbon” and the yellow ribbon the character wore in the movie symbolized her love and deep loyalty to her cavalry man.

The idea quickly spread in the 70s and yellow ribbons were soon attached to trees, doors and even cars. By 1980 during the hostage crisis, people simplified the yellow ribbon and began wearing them on their clothing. It has always been a popular gesture, but even more so since the terrorist attacks in New York on September 11.

Showing Your Support

Many people feel that it is the utmost importance to show their support for military personal that fight for freedom. Even people that do not have loved ones serving are showing their support by attaching a yellow ribbon to their hats, or clothing. You don’t have to stop there either. In fact, there is a whole line of yellow ribbon products you can purchase and not only will these ribbons show your support, but a portion of the proceeds will go towards supplying items to the military or helping out the military families. Look for shirts and hats that feature the yellow ribbon as well as decals, and car magnets. These are all perfect ways to show your loyalty.

You can also find other ways to show your support for the military serving overseas. There are many charitable organizations that are solely dedicated to providing items and equipment to the military. The Girl Scouts ship donated cookies by the cases each and every year. You can even find information on how to pack and send care kits that will help boost the morale of the men and women in service. Even basic hygiene items and toiletries are greatly appreciated. If you are interested in showing your support, get online and research the various charitable organizations in your area. You may even consider asking a friend or neighbor that has a loved one serving in the war what kinds of things are needed and send them directly to yourself. Your pride for the military troops does not have to stop with a little yellow ribbon. While that is a great way to show your support, there are many others things you can do as well. What a way to show your support!

It is a sad fact but senior citizens are the group that are most often scammed when it comes to cons that are being run by people who pretend to be representatives from well known charities. A great deal of these cons are done by way of the telephone and seniors fall victim to these clever and unscrupulous scam artists all of the time. The reason for this is not exactly clear. Many senior citizens have such a strong desire to help others that they either cannot or do not take the time to research the charity in question and simply take everything they are told at face value. Many senior citizens are alone and have no one who is able to help them do the necessary research. Still, con artists who know their game all too well easily bully seniors.

Having someone in a senior citizen’s corner who can teach and educate them on charities and on charitable giving is essential. Many seniors lack the resources to learn what they need to know. Many senior citizens home have financial advisors who can sit down with the residents and discuss financial matter with them, either in a group setting or one-on-one. One topic that is worth discussing is donating money to charities. Senior citizens can sometimes lose sight of how much money they have and where it is going so it is helpful if they have someone who they can trust to keep them on track.

Having a trusted family member or friend who can research a charity is a good idea if the senior is unable to do so him or herself, such as someone who physically finds it difficult to move around. Start a search at the IRS before allowing your senior mother or father to donate money to any charity. This is true even for the most well-known, popular and reputable charities around. You can never be too sure when it comes to your money or anyone else’s. The Internal Revenue Service is able to do a search for all charitable organizations and can let seniors know if the charity they are interested in is on the “up and up” or not.

Telephone solicitations are a common way that senior citizens are bilked out of their hard-earned dollars. If you are called on the telephone by a so-called solicitor of a well known charity always ask to be sent brochures or pamphlets of information from the organization before you agree to donate. The majority of scammers will not have any information to send you ands will therefore be scared off and are not likely to ever bother you again.

When called by a telephone solicitor, never ever give any personal information about yourself to the person, no matter what. Do not disclose your full name, your address, your birth date or your social security number. This includes any financial information such as your bank account number(s) or your credit card number. The same works for solicitors who contact you via e-mail- do not give them any personal information and it is better simply to delete the e-mail and not to respond at all. The only exception to this rule is if you are contacted through e-mail by an organization that you are personally well acquainted with, such as one you have donated money to in the past and/or have volunteered for.

It is important for senior citizens to bear in mind that many scam artists and phony charities will use the name of a reputable organization to solicit donation. If you are contacted in any manner by a charity and have suspicions about the legitimacy of the organization then take the time to get in touch directly with the head office in your town or city to verify that the solicitation was indeed legitimate. Do not get caught in a scam artist’s web of lies and deceit!

While it's nice to get tax breaks from charitable donations, it may not be wise to go looking for them, especially if the resulting tax deduction is based on less than honest figures.  There was a time when taxpayers were allowed to be on the honor system, so to speak, up to a certain limit regarding charitable donations.  But because taxpayers have claimed charitable donations in gross proportion to the amount charities have benefited, new laws have been enacted complete with stiff penalties for cheaters.

You'll find the words "fair market value" used in conjunction with charitable donations of household goods like clothes, appliances, and even cars.  However, the practice of taxpayers assessing the fair market value of their donated goods has been so abused, the term has been clarified by the Internal Revenue Service.  Too many people, it seems, were simply dropping off their junk items at charitable organizations and then claiming inflated values for the junk.

You should certainly claim a tax deduction when you're entitled to one and charitable organizations are all too happy to provide you with receipts of your donations.  However, it is still up to you to assess the value of those items; just be sure to follow the IRS guidelines when you do so.  For example, thousands of people have donated cars to charities and then some have made the mistake of claiming a deduction equal to the "blue book" value of the car.  While the IRS goes into detail on their website regarding the amount you can claim when donating a car, for the most part, it is now the amount for which the charity sells the car.  That, and not the "blue book" price, becomes the fair market value.

Fair market value applies when you donate used clothing too.  You cannot donate a box of old clothes and assess the value to be the amount those clothes cost new.  It has been suggested to compare the prices at the store where the clothes will be sold and claim a comparable amount.  After all, fair market value means the amount the item will likely bring when sold; not the over-inflated amount we'd like to claim.

Some people have fallen for scams directed toward people who are looking for tax shelters.  For example, paintings have been sold at one price with the seller telling the buyer that the painting would appreciate thousands of dollars in value within a year or two in order for the buyer to claim an amount on their tax return that is greater than what they actually paid for the painting.  Believing the inflated details told to them by the seller, people have then donated paintings and other goods specifically for the purpose of realizing a tax break.  In the end, though, it just doesn't work and for those who try to make it work, there are stiff penalties in store for them.

For those truly interested in charitable giving, a tax break isn't at the forefront of their minds, but rather a perk after the fact.  Unless you're itemizing deductions, a one-time household donation isn't likely to even find its way to your tax return.  For those that do itemize, though, legitimate tax-deductible donations do ease the tax burden a bit.

Don't ever allow a "promoter" or anyone to inflate the value of your donation to a charitable organization because, regardless of what is written on your receipt, you are the one responsible for what is claimed on your tax return.  For example, if someone solicits a donation from you to purchase certain items for a charity that will actually cost you $300 to purchase but then promises to arrange a receipt that will show the value of the donation at $3000, not only should you not allow this transaction to take place, you should not let any transaction take place with the person willing to perpetrate such a fraud.

Again, you are the only one responsible for what is listed on your tax return.  Certainly take the deductions to which you are entitled, but don't try to inflate your charitable gifts.  Remember the old saying,"tis better to give than to receive."

Charitable contributions are given each year in the United States.  They allow for many groups to continue their work with programs that help benefit your community and the country at large.  Here is a look at some of the giving statistics and how they affect you and your country.

One good sign is that the statistics of charitable contributions in 2006 went up a percent over 2005, even after being adjusted for inflation.  Starting in 2001, the amount of contributions had gone down as a result of an economic slump.  An upward trend is not only a sign of an improving economy; it also provides many services for those who depend on the services of charities.  Many people do not realize the outward impact that charities have on their surrounding communities and how deeply the affect the economy and the communities that work with them.  If there were not any charities, the economy that we know today and the way that America works would simply not be the same.

Here is a look at just how big an effect the charitable organizations have on their communities.

For instance, the 2006 totals for donations to charitable organizations were $295 billion.  This accounted for approximately 2.2 percent of the GDP.  This was an increase of about one percent over the previous year.

Of that money, a little over three quarters of it came from individuals, or a total of about $223 million.  When adjusted for inflations, this is also an increase of just over a one percent increase.

Also up were the donations to charities made by foundations.  The total was $36.5 billion, which was up over nine percent.

On the opposite end, giving by bequest and donations from corporations were both down.  Donations done by bequest were $22.9 billion, down about five percent, while corporation donations were down around ten percent for a total of $12.7 billion dollars.

Of all the places that received donations, religious organizations received the most support – nearly $97 billion.  Of these donations, people who chose to donate at their place of worship received most.  The second highest group was education, which received less than half that total at just under $41 billion.

The largest increase in donations was seen by charities that work in the arts, culture, and humanities.  They received $12.5 billion in donations, which was up nearly ten percent from the year before.

In total, nearly all the types of charities saw an increase in donations.  Only four saw a decrease:  human services groups, international organizations, health charities, and environmental and animal organizations.  Part of this may be due to the fact that donations in these areas may have been inflated in 2005 due to the Hurricane Katrina disaster relief efforts made by many of these groups.  If you exclude these donations, the changes were not as dramatic.  This illustrates directly how whole communities can come together in the face of a tragedy and have their resources pooled to make a difference.

Perhaps the largest impact of all is one that cannot be measured directly in numbers.  Every time that you give money to a cause you believe in, you are helping it to achieve its goals.  Work with local charities, and you can see a direct improvement in your own community – whether it be cleaning up the parks, funding local shelters, or feeding the homeless.  Work with global charities, and you can help protect the environment or provide healthcare to war orphans.  No matter what cause you believe in supporting, every little part that you do can help that cause out.  The only donation that will not help is the one not given.

Giving your donations to charities is not only a great thing to do in order to help others, but it can also help you when it comes time to file your taxes with the Internal Revenue Service. There are many rules and regulations governing what makes a tax exempt donation acceptable, but you can bet that when you do donate, you will see a difference when you file.

At one time, you could donate just about anything, whether it was goods or services to any charity and write it off when you file your taxes. Now, the rules are a little more stringent. Before, you could take any slip of paper with the amount your donated and use it for your taxes. If you donated money, you would simply write the name of the charity and the dollar amount. If you donated items or goods, such as clothing, then you would place a dollar amount on your donation to use at tax time. In the past, there was a lot of wiggle room when it came to using tax exempt donations. You really didn’t need a lot of official documentation. That $20 you slipped into the Salvation Army bucket was all you needed to do to use it for your taxes. That, however, has changed.

With new regulations in place, you will certainly need some sort of documentation and this especially applies to cash donations. Part of this is aimed at making sure people aren’t “fudging” on their tax exemptions. The other reason for these changes is to help people donated to real charitable organizations. Too many so-called charities were popping up over night and the answer to this was to make these charities more accountable. These rules are causing many people to skip giving smaller cash donations and instead give more money in larger sums a couple of times a year.

In addition, rules have also changed about how much you can give without documentation. At one time, as long as your donation was under $250, you could simply use a copy of your check or handwritten note as proof of your giving. That is not the case any more. The bottom line is that no matter how much you plan on giving, if you want to use your donation when you file your taxes, you better get a receipt. A hand written note simply won’t cut it anymore when it comes to file your taxes. This is the reason that many charities now send you a receipt in the mail, or offer you a receipt at the time of your donation drop off.

Another type of donation you need to be aware of is donations in the form of household items or other goods. It used to be that you could simply drop off items at your local charity and get a receipt for the value. Most of the time, you would set the value at what you thought the items were worth. The IRS would use that information without question. Now, those rules have also changed. If you donate your old laptop or a bag of clothing, then you need to seriously consider the value. In fact, if it is worth over $500, the law actually states that you need to have this item appraised to determine the monetary value. There are actually true stories about people who have donated large amounts of items, worth thousands of dollars, only to find that the IRS disagrees with the value of the items. If this happens, you are looking at a hefty fine from the IRS.

As you can see, making donations can certainly help you when it comes time to file your taxes with the IRS. It is your responsibility to use these donations and tax write offs carefully and make sure that you have all the necessary and official documentation. It is always better to get it in writing and hold on to it until you file your taxes.