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From the Independent Record Holiday Gift's From the Heart:

‘Tis the Season to be generous and thoughtfulholiday gift guide

By Joy McGrath

Helenans are incredibly generous – we open our hearts and our checkbooks (and internets) to many, many causes.  At this time of year, when we’re being approached by more than the usual and when the spirit of giving back is at its peak, it’s a good idea to be especially cautious and thoughtful in your giving. Doing good works and supporting good causes is a very personal thing but a person can check the credibility and accountability of the organization.  Here are a few things to keep in mind before sending that donation through the mail or the Internet.

  • Identify your interests and values.  What is important to you and your family; what are your priority issues and causes that you want to support with your time, talents and financial resources?  It may be a shelter for people or for animals, a health care program, a local or state food bank, a community arts program, human rights project, environmental protection, your grandkids’ recreational programs, your alma mater or your church.  Some families talk about this as a group, sharing with each other thoughts about the importance of various programs to them.  Make sure your donations go where your heart is; yet make a conscious and knowledgeable decision.

 

  • Learn about the groups.  Ask for a brochure, newsletter or annual report that describes the organization and/or visit websites.  Do they have a board of directors that is responsible, along with staff, for the programs and services?  Are they registered to do business in Montana; check this out at the Secretary of State’s website. 

If the group is a part of Montana Shares or United Way, you can be sure it is solid and accountable, that donations are tax-deductible and that it is doing the good work it claims to do.  (These and other federations, as they are called, do the accountability tracking for you.)  Or check GuideStar (www.guidestar.org), a free public website providing a source of high quality information on more than 1.5 registered charities.  At GuideStar, you can verify a nonprofit’s legitimacy and learn more about its mission, programs and finances. (Not all nonprofits are registered at this site.)

  • Check out the status of the nonprofits.  Be sure it is not only tax-exempt but also recognized by the IRS for tax-deductible donations if you plan on claiming it as a tax-deduction.  There are some 27 categories of tax exemption; not all provide tax-deductions.  This information may be available at GuideStar or simply ask the nonprofit to show you its “IRS letter of determination” and be sure that it says contributions are tax-deductible.

 

  • Learn what they will do with your contribution.  How do they spend their money? Most all organizations will reflect some administrative and fundraising expenses.  A usual standard is that if a group’s revenues are being spent wisely and efficiently at least 75% of its annual expenses support its programs.  Ask them for their annual report and/or IRS 990 (990s must be available for public viewing by the nonprofits and may be available for viewing at GuideStar.)  You may want to ask how your name and gift amount will be protected?  Also, consider what level of security they have at their website. What is their confidentiality policy?  You may want to clarify what privacy you expect before giving and how they will go about protecting your privacy.  If you prefer to have your gift remain confidential, write on your gift that it be kept anonymous.  You can expect the nonprofit to honor your request. 

As a matter of fundamental principle, nonprofits should adhere to the highest ethical standards, at least meeting their legal requirements, conveying to the public what they do and how they spend their money.   It’s up to you, the donor, to know about the organizations to which you are giving.

Here are some tips for being a street-smart donor.  Be especially attentive if someone is asking for donations for a group that is new to you or sounds like one with a similar name. Don’t give confidential or secure information over the phone or a door-to-door solicitor.  Don’t enter any secure information online without confirming that it is a secure or locked site.  Don’t accept the offer of a courier to pick up your donation.  Don’t give cash. 

Get a receipt, which is legally required if the donation is over $250 and if you want to claim it as a tax-deductible contribution.  Don’t be enticed by purely emotional appeals; learn what the group actually does to solve the problem they’re presenting.  Don’t succumb to high-pressure appeals – legitimate charities won’t push you to give on the spot. 

Have concerns? Contact the Montana Attorney General’s office; they have an office set up to help with just these kinds of concerns.

Ask your employer if there is a policy for matching contributions to nonprofit organizations.  If so, be sure to submit the proper paperwork and take advantage of the matching gift program.

Lastly, consider giving generously.  Your gift of any size makes a difference in the important work of Montana nonprofits and will be greatly appreciated. 

Some resources:

  • Department of the Treasury, Internal Revenue Service for new charitable contributions substantiation and disclosure requirements – Publication 1771 (Rev. 5 2007) or www.irs.gov

 

 

 

 

McGrath has been involved with Montana nonprofits for more than25 years and is the Executive Director of Montana Shares, a partnership of Montana-based nonprofits devoted to improving the quality of life in communities throughout the state (see back cover for more information).  She is also past chair of the board of directors of the Montana Nonprofit Association.

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Montana Shares is a proud member of:

National Alliance for Choice in Giving (NACG)
is an association of 55 local and statewide federations (including Montana Shares) committed to increasing awareness of and support for nonprofit organizations in your community. NACG members build community and build philanthropy at a local level.

Montana Shares is also a member of Community Shares USA, a nationwide collaboration of state, regional and local federations connecting donors to over 1,000 social justice, women's, environmental and service organizations.


 

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Montana Shares

825 Helena Avenue, Helena, MT 59601
PO Box 883, Helena, MT 59624
406.442.2218
1.800.823.2625 (toll-free nation-wide)
fax: 406.442.2346
shares@montanashares.org

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