Issa Asad Shares His 3 Must-Dos Before Donating to Charity
It is a common custom for people to flock the stores immediately after Thanksgiving. Well, this is not the case with Justine Lackey who heads Briarcliff Manor, a successful entrepreneurial money-management firm located in N.Y.
“In the course of the year, I receive numerous charity solicitations which I preserve in a folder. Once Thanksgiving is over, I analyze them prior to supporting various organizations,” Lackey expresses. “This helps me to make informed decisions with respect to the charity solicitations received.”
Lackey’s standpoint on donating earlier on before the end of the year is very practical given the fact that tax laws keep on changing. “Tax laws can be modified with changes focusing on capping itemized deductions,” said Issa Asad Florida businessman and entrepreneur since 1996. Mr. Asad is the CEO of Q Link Wireless and Quadrant Holdings, located in South Florida. He is also the author of 4 e-commerce and marketing e-books that can be purchased on Amazon.
Here, Issa Asad Shares His 3 Must-Dos Before Donating to Charity:
1. Carefully assess the organization
The first step that ought to be taken before giving a donation is to assess the validity of the organization. Is it a true representation of its articulated core values and principles? “It is not uncommon for illegitimate organizations to pretend to be genuine charities in the face of disasters,” states Lackey. “As an entrepreneur, I aspire to equally employ both reason and generosity of heart before making donations.”
To assess the credibility of a charity and get more information about it, charitynavigator.org is a suitable website to explore. Herein, you will find crucial details including the charity’s financial state, expenditures, revenue, and leadership compensation among others. Lackey also stresses the need to ascertain if your donation will be deductible by confirming with IRS the exemption status of the charity in focus.
2. Decide on the amount to offer
There are no restrictions as to the amount you should offer to charity. Nonetheless, if you decide to take a tax deduction understand the guidelines to adhere to. According to Lackey, for a sole proprietor, your itemized personal tax return forms the basis of your donations claim. As for those in a partnership or S Corp, you claim donations on your itemized personal tax return by deducting part of the contribution.
Based on the charity’s IRS category, on a personal return, deductions can be effected between 30%-50% of your adjusted gross income. The 50% category comprises churches, schools and private-operating foundations. The 30% category comprises fraternal societies and veterans’. Deductions amounting to 10% of taxable income can be made on the business’s return in case your business falls in the category of C Corp.
3. Preserve genuine written records
Records act as proof of your contribution to charity. Cash donations demand bank record in form of a canceled check or written record from the charity validating your donation. As for donations exceeding $250, a written record from the organization with particulars such as date, amount and any goods or services offered in exchange for the contribution is necessary.
“The guidelines may be difficult to grasp fully which is why it is always wise to solicit the counsel of a CPA professional, tax expert or an IRS accredited agent. These professionals will competently analyze the matter in question and ensure you reap worth tax benefits.”