Why do people make charitable contributions in December? To lessen the tax burden, the time of year makes no difference. If your cash donations are significant enough to count as an income tax deduction, they are reported for the year, thus January through December. Still, Nonprofit Source reports that one-third of all cash contributions to non-profit organizations are received in December. Ten percent of all giving comes in the last three days of the year. According to Bloomerang, nearly half of not-for-profit revenue arrives from October through December.
One reason people wait may be due to a heightened awareness of need as the days become shorter (at least in terms of daylight) and the weather is cooler. Holidays lighten our spirits, and we become more thoughtful of the needs of others. We reflect on the bounties we enjoyed during the year and want to “give back.” And for high-income earners, their net pay may be higher due to caps on annual federal payments or year-end bonuses.
Many people who make charitable contributions have specific organizations they like to support. If you wonder how the not-for-profit uses your donation, several organizations monitor nonprofit organizations and their financial well-being. I have used GuideStar to review nonprofits’ financial health and other data. GuideStar houses data for almost three million nonprofits. Doing your research gives you peace of mind, knowing how charities rank based on effectiveness or efficiency.
They review donors, volunteers, and administration of these organizations. In most cases, the nonprofit organizations self-report but in some cases the reviewing organization does its own research. GuideStar, Charity Navigator, Givewell, and Great Nonprofits are a few.
Remember local charities, also. There are groups to which I donate lightly used items throughout the year, but often forget they also need cash to support their missions.
Importantly, one should know about the health, status, and focus of the organization to which you are donating. Don’t go strictly by the name of the organization, assuming their work focuses only on the needs in their name. Personify WildApricot states that two-thirds of donors do not do their research!
I have recently joined a nonprofit organization whose sole purpose is to donate large sums to other nonprofits. The idea is that I can make a donation which of course is appreciated; however, when several of us pool our money, we can make larger donations ($100,000) to a few nonprofits. With that kind of money, their agendas are better supported, and their dreams get a huge kick start. The impact of each large donation makes a huge difference in our community. Of course a nonprofit must apply for the grant and rise to the top of a well-designed vetting and evaluation process.
People and organizations are stretched thin financially. As we consider our hard-earned dollars going to help others, we want to feel confident that the money truly helps make a difference. With a little research and a big heart, even a few dollars will make a difference. So large or small, carefully give as you are moved to do so, knowing your contribution is sincerely appreciated.
Silver Sage Sisters 