We all know that the United States, as well as the great majority of the rest of the World, has faced hardships throughout the year. Many folks have been forced into financial situations that they were not prepared for. It’s only normal that giving to charity is not the most prominent thought in their mind.
So, why continue to give even in such hard times? The simple answer is that when you give to a good cause, you will likely be paid in nothing more than gratitude. Fortunately, for most of us, gratitude is all we want as payment, as well as knowing that our donation efforts are not being wasted.
With that simple reason for donating to charity in 2020, we also discuss some other common reasons for which individuals donate their hard-earned income.
Personal Charity Foundations
Some people become involved in their own foundations because they have the time, resources, and know-how to set up their own charitable foundation. This process can not only be very costly but also time-intensive.
Closeness To Those In Need
It also true that many kind individuals donate simply because they know a person who needs it.
If you are in a situation where you have recently lost someone close to you, such as a parent, friend, or even a co-worker, you may feel compelled to donate. This is an understandable reaction as nobody knows when they themselves will need help. By donating in light of the tragedy, many individuals feel they are ‘doing their part’ but also that others would do the same for them if they fell into unfortunate circumstances.
As crude as it may sound, in the year 2020, many individuals still choose to donate large sums of money to their favorite charities because it reduces the amount of taxes that they have to pay. But how does this actually work?
The most important point to know about saving on taxes by donating is that you won’t necessarily be saving money. Instead, what you are doing is more akin to “redirecting” your donations from the government to that specific charity. This is because, as long as a charity is accredited, most donations to such entities can be ‘written-off’ on one’s tax returns.
For example, say you had to pay $100 in taxes for the year. If you note on your return that you donated $100 to a charity in that year, and you can prove it to the taxman via some sort of receipt provided by the charity, then your tax dues can be subtracted from that donation, and ultimately you end up paying $0.
Remember that this is only a simple explanation of how charity donations can be noted on tax returns. Your case may be different, write-off limits exist, and not all charities are applicable. Indeed, most wise folks reach out to a tax professional to help them manage their specific tax situation – you should do the same!
Donating Knowledge (and Time)
A donation does not always have to come in the form of money. In fact, many would argue that donations of time by individuals with a specialized skill-set can be more beneficial than large sums of money.
For this reason, many professionals donate their time and knowledge. They will often become involved in community outreach programs where they have close contact with at-risk youth. By connecting with such populations at a young age, it’s possible to have a larger impact on another person’s life.
Teaching an inexperienced person “how to fish” at an early age can provide them with a lifetime of food, both in the literal and figurative sense.