Different Ways You Can Donate To Charities and Nonprofits

Are you wondering how to donate to charities? As a business owner, if you find yourself fortunate enough to have the ability, you should consider giving back to your community by supporting charities and nonprofits that are committed to making the world a better place to live. They might be helping children obtain good healthcare, opening educational doors for disadvantaged students, delivering nutritious meals to the homeless or connecting seniors with volunteer services.

With so many organizations doing good deeds, you should consider making a contribution to an organization that supports your personal values. As Marcus Lemonis says, “There is no being generous to a fault. Because there is no fault in being generous.”

All charities are nonprofits, but not all nonprofits are charities. In fact, the Internal Revenue Code has many different classifications for nonprofit organizations, depending on their purpose. For example, a homeowner association or civic organization could be structured as a 501c(4) nonprofit. You could make a donation, but it would not be considered tax-deductible under most circumstances.

A nonprofit has one basic requirement, according to SCORE, a nonprofit resource partner of the U.S. Small Business Administration (SBA). None of the corporation’s net profit from donations, membership fees or business activities will benefit any individual. However, those funds can be used for many other purposes, including advocacy efforts like lobbying.

So an important step in determining how to donate to charities is looking at the nonprofit’s mission statement and the “fine print” on the home page. If the nonprofit’s purpose is to support medical research, education, science, a faith-based initiative or a similar cause that benefits the public, it probably qualifies as a charity, and you will see the 501c(3) designation on the website.

As with all donations, you should contact your accountant, attorney or tax advisor to discuss the best options for you and your business.

You can also set a good example for family members and friends, or your business partners and employees to also donate to charities. It can help those in your sphere of influence develop a spirit of collaboration and camaraderie, especially if you volunteer together, along with making donations. But the best reason to donate to charities is being able to express your personal values in a meaningful way.

You can contribute online, or send in a check to help fund a charity’s purpose. This has the potential advantage of putting a limit on your support. If you find yourself short on funds later in the year, you can simply delay making another gift until your financial circumstances change.

You can also set up an online payment or transfer of funds every month or quarter. The benefit of this approach is that your gifts are made automatically, so you can focus your attention on business or personal matters. You will get email reminders and thank-yous for your payments.

You can create a donor-advised fund (DFA) as a vehicle for your charitable giving. It’s a simpler and less expensive alternative to establishing a private foundation. Basically, you put your contributions into the fund, which will be managed as an investment account by a financial institution. That allows your fund to grow in value, while you decide when and how much to donate to charities.

As you decide how to donate to charities, make it a point to consider serving as a volunteer. Many charities and nonprofits rely on experienced business leaders and professionals to guide their operations and keep them moving forward on their missions. Here are some of the ways you could give back to your chosen cause.

You can be a participant in a fundraising event, such as a walkathon or annual gala, generating more dollars for the charity. You could also serve on the planning or the event committee, providing support to the participants. In many cases, you can also invite family members, friends, partners and employees to take part as well, fostering a sense of teamwork.

As an entrepreneur, you probably have plenty of real-world experience in how to address organizational challenges. You could become a mentor or coach to a charity or nonprofit leader offering advice on people, processes and products – three cornerstones of Marcus’ philosophy.

This can be a very rewarding role, although it does require a significant commitment of your time, and possibly your financial support as well. As a volunteer leader of a charity or nonprofit, you can provide valuable oversight of its operations, while mapping out a strategic course for the future.

Now that you know how to donate to charities, it’s time to turn that knowledge into action. Here are three quick tips to get you started.

Make sure its mission is aligned with your values and interests. Do your homework to see if it is making an impact, and check its nonprofit status in case you want benefits from a charitable tax deduction.

See what type of financial donation or volunteer commitment makes the most sense in your current circumstances. Hint: it’s usually better to start small and increase your involvement in the future.

When you’re ready to make a donation, remember the Nike slogan and “Just do it!”

Making that first donation to a charity or nonprofit can be a tremendously rewarding experience. It can be the start of a lifetime journey into the world of philanthropy where success isn’t measured by what you make or what you keep. Instead, your success will revolve around what you give back!