As holiday season approaches, many thoughts turn to helping those less fortunate. In fact, surveys have indicated that over 50 percent of all donations to charity are made between Thanksgiving and Christmas. It's important, however, that you don't make charitable contributions indiscriminately. By following a few precautions, you can ensure your generosity provides maximum benefits for people and organizations who need your help.The Federal Trade Commission suggests you follow these guidelines:
* Be wary of appeals that tug at your heartstrings.
* Ask for name of charity if it's not provided promptly.
* Ask what percentage of donation is used to support causes and what percentage is used for administrative costs.
* Call charity to find out if it's aware of solicitation and has authorized use of its name.
* If solicitation claims that charity will support local organizations, call local groups to verify.
* Discuss donation with a trusted family member or friend before committing funds.
* Don't provide any credit card or bank account information until you have reviewed all information from charity and made decision to donate.
* Ask for a receipt showing amount of contribution and stating that it is tax deductible.
* Understand that contributions made to a "tax exempt" organization are not necessarily tax deductible.
* Avoid cash gifts. They can be lost or stolen. For security and tax record purposes, it's best to pay by check - made payable to beneficiary (charity), not solicitor.