We have a day for giving thanks. We have two for getting deals. Now, we have #GivingTuesday, a global day dedicated to giving back. On Tuesday, December 1, 2015, charities, families, businesses, community centers, and students around the world will come together for one common purpose: to celebrate generosity and to give. – Giving Tuesday
Here are 6 legal tips for donors for Giving Tuesday:
- If you intend to take a charitable contribution deduction, make sure you are giving to a qualified 501(c)(3) organization. You can check out the organization on the IRS Exempt Organizations Select Check. Limit search to organizations that are eligible to receive tax-deductible charitable contributions.
- If you want to learn more about the organization before making a contribution, consider reviewing its website along with its Form 990 annual information returns on Guidestar. You may also find the following resource helpful – Evaluating Charities Not Currently Rated by Charity Navigator – but we hope you’ll prioritize impact over overhead ratios (see Overhead Myth: Thoughts from a Nonprofit Attorney).
- If you are solicited by a commercial fundraiser, make sure the commercial fundraiser is properly registered where registration is required (e.g., California) and find out what percentage of your contribution will go to the charity vs. the fundraiser.
- If you want to restrict your contribution to a specific program or region, make sure you communicate that restriction in writing at the same time as making the contribution.
- If you want your contribution to go to a foreign charitable organization (NGO), note that if you make a contribution directly to the NGO, the contribution will not qualify for a charitable contribution deduction. However, if you make a contribution to a U.S. charity that exercises its own discretion and control to regrant your contribution to the NGO, the contribution may qualify for the deduction so long as you don’t explicitly direct that the contribution be regranted to the NGO. It may be appropriate to restrict the contribution to advancing the purposes of the NGO in that particular foreign country. See What is an American “Friends of” Organization? by Ellis Carter on the Charity Lawyer Blog.
- If you make a charitable contribution, make sure you have sufficient documentation to support taking a charitable contribution deduction. For contributions of $250 or more, it’s the donor’s legal obligation to obtain a written acknowledgement (not the charity’s legal obligation to provide one) with the required information.
See our legal tips for nonprofits for Giving Tuesday here.
6 Tips for Giving Like a Pro (Giving Tuesday)
Tips for Making Informed Giving Decisions (Center for Non-Profits)
BBB Tip: Five Tips for Wise Giving on #GivingTuesday (Council of Better Business Bureaus)