November and December are critical times of year for charities, both local and national, but local charities specifically rely on the spirit of goodwill that rises up around the time you’re flipping the last few pages of the calendar.
If you’ve been researching organizations in your area, and thinking of supporting local charities before the end of the year, you’re on a good track.
Here are some of the top reasons to make a donation before the end of the year, which just happens to be right in time for the holiday season.
Many Local Charities Rely on Year-End Giving
All charities rely on year-end giving to some degree or other, but smaller ones and local organizations, which have a smaller service area and commensurately small donor base, may quite literally need those year end donations.
Some sources indicate that around 30% of all donations to charity are made in the months of November and December, and at least one estimate suggests that for some charities as much as 10% of total annual revenue is made within just the last three days of the year.
Which means that for some charities, those year-end gifts constitute a fundamental impact in the difference they will be able to make in their service area in the coming year.
The Potential Tax Benefits
First, this post is not intended to serve as legal or financial advice. If you have questions about tax deductions, get in touch with your accountant.
Now, with that disclaimed, it is also the case that your decision to support local charities may also involve a tax write-off.
This is, no doubt, one of the reasons that so much is donated at the end of the year – especially within the last three days, as indicated above.
But, at any rate, donating at the end of the year represents your last chance to take advantage of tax incentives before the year closes.
If you want to do a little more research, look up the CARES Act, which defines incentives for charitable donations made to 501(c)(3) nonprofits. The CARES Act includes a new deduction for all taxpayers (regardless of whether they itemize or file universally) for contributions up to $300.
Your Company May Be Willing to Match
Just as individuals can benefit from potential tax deductions, so too can corporations, and the CARES Act mentioned above increases corporations’ maximum annual limits on deductions from 10% to 25% of adjusted gross income.
All of this is to suggest that your company may be interested in matching your contribution. Get in touch with your supervisor or someone in HR – your organization may be willing to match your donation or make one of their own.
But that part, true though it is, is beside the point. Looking into your company’s match program will also make a bigger impact on the cause of your choosing and represents a way to maximize that impact.
It’s a Time for You to Reflect on Your Values
Lastly, giving at the end of the year is a good idea for many individuals because it gives them a chance to reflect on the previous year, on their goals and values, and to see what sort of impact they have made in their community, especially if they’ve made the decision to support local charities that make an actual impact where they live.
Thinking About Supporting a Local Charity? Start This Holiday Season
You still have time, but the clock is ticking. If you want to make a charitable contribution to support a local charity this holiday season, the time to start researching is now!
