8 Tips for First-Time Donors This Season of Giving

Table of Contents

1. Essential Giving Tips for First-Time Donors This Season
2. Pick Your Charity Carefully
3. Involve the Whole Family
4. Research a Charity’s Credibility Before Donating
5. Only Use Safe Donation Methods
6. Set a Donation Budget
7. Understand the Tax Benefits of Charitable Donations
8. Keep All Records and Receipts
9. Track Your Donations Impact

The season of giving is upon us, and it's a wonderful time to participate in acts of kindness and the holiday season tends to make people feel especially generous. As a result, plenty of individuals and families will be navigating the world of charitable donations.

If you're feeling inspired to give this year, it can be both exciting and a bit confusing – especially if you're a first-time donor. Understanding your contributions is important to make a real impact while managing your finances responsibly. This post aims to give you useful tips to make your giving experience a successful and fulfilling one.

Essential Giving Tips for First-Time Donors This Season

Choosing to be a donor is a rewarding decision and a great way to help communities far and wide. As you start your charitable journey this season of giving, there are a few essential tips you should keep in mind. These simple guidelines can improve your journey and help make a difference in other people's lives.

1. Pick Your Charity Carefully

Before anything else, it's important to find a charity that fits your values and the causes that are close to your heart. Every fundraising campaign serves an important purpose, but there may be an option that's better suited to your giving goals. Visit their website and look at their mission, goals, and impact to see if they truly speak to you.

There are many kinds of organizations you can contribute to – from public charities to private foundations. You'll also want to think about how open they are, their financial stability, and how donations are used.

2. Involve the Whole Family

Encouraging your whole family to help out with giving can build a strong sense of kindness and sharing. When kids get involved, they learn important lessons about caring for others and helping the community. You can also help them establish budgeting basics and encourage the habit of paying it forward.

Talking together about choosing charities can be a great way for everyone to learn and feel extra joyous this season. By including everyone, you can form special memories and traditions around giving back.

3. Research a Charity’s Credibility Before Donating

Unfortunately, there are people out there who will try to take advantage of others' good intentions. That said, double-check that a charity is legitimate and trustworthy before making your first donation. To simplify this process, use sites like GuideStar or Charity Navigator. Look for information about their money management and their impact reports.

Knowing how your donation will be used helps you make an informed decision. You'll also have peace of mind knowing your money is going to a good cause. Before you send money to anyone: research, research, research.

4. Only Use Safe Donation Methods

On top of a charity's credibility, you should only opt for safe ways to give. When giving online, be sure the charity you pick uses trusted platforms for money transactions. Look for organizations that have secure online payment options or a verified address for checks. Never share your financial info through unsafe channels, and keep an eye out for any potential scams. It's worthwhile to make sure your gift is protected.

5. Set a Donation Budget

Budgeting is the key to healthy finances –– and your charitable donations are no exception. You'll want to plan your contributions by setting a budget that matches your finances. Start by thinking about your gross income and make sure your donations are sustainable for your personal finances. Then, begin intentionally putting money aside for your philanthropic goals.

Remember, giving to qualified charities can give you tax benefits, so be sure to account for this in your budget. When you're organized, you can make a bigger impact with your giving.

6. Understand the Tax Benefits of Charitable Donations

As a first-time donor, you might not be familiar with how tax deductions work for charitable donations. In the United States, the Internal Revenue Service (IRS) lets taxpayers claim income tax deductions on charitable contributions. This can help lower your taxable income and reduce what you owe for that tax year. You can also weigh which donations will have the greatest impact while lowering your taxes. For example, you might donate appreciated assets, like stocks, instead of cash.

By keeping tabs on how these deductions relate to your gross income and federal income tax, you can make the most of your donations and enjoy some tax savings. It's a good idea to talk to a financial professional to be sure you're filing your taxes properly.

7. Keep All Records and Receipts

Something all first-time donors should make a habit of is good record-keeping. Not only will this help you stay organized and on top of your finances but it's your key to claiming deductions on your federal income tax. This includes every receipt that shows how much you gave to a charitable organization. Then, you can easily access your donation information for IRS requirements.

8. Track Your Donations Impact

Supporting a cause means more than just giving money – it's keeping track of when and how your donations are being used. Just like you should be keeping track of every gift for your own financial goals, you should make a habit of following up on the charity's efforts.

Stay in touch with the charity to get updates on the projects you're supporting. Understanding your impact will give you even greater satisfaction and motivation to continue helping. It serves as a reminder of the difference you're making.

Ready to Plan Your Donations?

If you're ready to take the next steps as a first-time donor, we commend you. Your generosity has the power to benefit those in need while providing you with a sense of accomplishment and motivation to continue giving back. So, as you venture into the season of giving, remember that your kindness truly makes a difference.

As you're preparing your finances to match your philanthropic goals, our credit union has the products and services you need to manage your money wisely. Since your budget will play a large role in your contributions, consider setting up a dedicated savings account with Addition Financial to monitor your giving funds.