Are you planning to donate to a charity this holiday season? If so, here are three tips to help you give smarter:
Do your research. If you’re interested in donating for tax purposes, visit www.irs.gov to find out if your charity fits the definition of a nonprofit organization. There are many types of qualified charities, but the most popular is a 501(c)(3), which is a qualified nonprofit organization that has filed with the IRS for tax-exempt status.
In addition, the Federal Trade Commission (www.ftc.gov) offers valuable information on how to look into a charity’s validity and status. The FTC also suggests you do some extra digging when it comes to charities that appear suddenly after a natural disaster or other event. While these charities may have good intentions, they may lack the infrastructure to make the most of your gift.
Your financial advisor can partner with your tax and legal professionals to walk through your options when it comes to charitable giving and discuss how those plans could affect your overall financial strategy.
Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.