Donations of money, time reward giver, recipient

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Robin Robeson is senior vice president and market executive with The Commerce Trust Company, a division Commerce Bank N.A.|ret||ret||tab|

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There is nothing better than the uplifting feeling of helping those in need. Many people give out of a common desire to share personal rewards with others and to benefit the organization or individual who receives them. Many already share their good fortune with others by volunteering and making financial gifts. But sometimes the act of giving can be time-consuming and frustrating. |ret||ret||tab|

In order to ensure time and money are spent wisely, here are seven easy-to-remember tips, based both on experience and on guidelines provided by the Council of Better Business Bureaus.|ret||ret||tab|

Create a budget. Few of us can afford to donate to every group that asks for help. Begin each year by developing a budget, then keep track of fund-raising activities and designate recipients for the year. By being proactive, you maintain control of your giving rather than simply reacting to the many requests you get each year. If your contributions are substantial, you may also want to consider making gifts by establishing a charitable trust. Like personal trusts, several charitable trust options are available.|ret||ret||tab|

Help as a volunteer. By volunteering for the organizations, you will learn more about its programs and services.|ret||ret||tab|

Ask questions. As a potential donor, you have a right to know what kinds of programs a charity operates, how much of donations are spent on these programs, and how much is spent on fund-raising, executive salaries and other administrative expenses. |ret||ret||tab|

The quickest way to gather this data is to request a copy of a charity's annual report, budget, audited financial statements, tax returns and a list of board members. |ret||ret||tab|

Realize that "tax-exempt" is not the same as "tax-deductible." Some organizations may say they are "tax-exempt." That means they do not have to pay taxes. If you wish to deduct your contributions on your federal income tax return, donations must be made to nonprofit organizations that the Internal Revenue Service considers charitable, educational, religious, scientific or literary; those that prevent cruelty to animals; or those that foster amateur sports. In most cases, these groups have received 501(c)(3) status from the IRS. If you are unsure about an organization's tax status, ask for a copy of its Letter of Determination or contact the local IRS office.|ret||ret||tab|

Identify the groups that you want to support. Take the time to think about what causes are most important. Sometimes it is as simple as visiting a charity's Web site or calling the organization itself to gather the necessary information to make a decision.|ret||ret||tab|

Take account of what percentage of your donation goes toward charitable purposes. The phrase "All proceeds go to charity," though often used, is sometimes misleading. Ask how much of your contribution will go to the program you want to support and how much goes to pay the fundraisers. |ret||ret||tab|

Yield rewards. Checks should be made out in the charity's name, not to the individual collecting the donation. Also, keep a record of your donations, noting the date and amount of the donation. Request a receipt and keep it, along with your canceled check and bank statement, for documentation at tax time. |ret||ret||tab|

You don't need to be wealthy to help a favorite charity. In fact, there are many financial options available when it comes to donating to a charity. Trust company professionals, along with attorneys and tax advisors, can provide the necessary support to help make the most out of your charitable sharing.|ret||ret||tab|

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