Church Finances #6 - Year End Giving

This is the time of year that every non-profit organization is after your last charitable giving dollars. From "Giving Tuesday" to "Christmas" and through December 31, you'll hear pleas for money. Some statistics show that non-profits receive 50% of their donations from October through December. It could be that folks want to get caught-up on tithes to their church or companies may see that they are going to have a year-end surplus; but whatever the reason, 'tis the season for giving to charities.

There are several things to keep in mind as you consider giving a year-end gift:
1) Make sure your tithes and offerings to your local church are caught-up, before considering your gift to para-church organizations.
2) If you choose to give outside your local church, look to other local charities.
3) Make sure the organization you desire to donate to is credible. Many aren't.
4) Research, or at least ask, how much of your money the organization will use for "administrative fees."
5) If you are giving above your tithes to a church, ask for a list of current ministries or projects to help you determine how you want your money used. You could request that it be used generally for missions, summer camps, etc. If you don't request an area for use, the church may just "bank" it.
6) Look for genuine need. I've learned never to give beyond my tithes and missions giving to a church that is debt free. Debt-free churches without a "front-burner ministry project" will usually be arguing over how to increase staff salaries or how the most influential people want to spend your money.
7) Make sure the recipient will use your donation as you request, because non-profits are NOT required to do so. Technically, the donor is not permitted to dictate "how" the donation is to be used if a tax deductible letter is given. BUT any organization with integrity will try to use the money as the donor has requested.
8) Look for sustainability in the organization.

Final thoughts to consider BEFORE you donate:
1) If you are desiring a tax deduction, you should verify the groups 501(c)3 status before you give. This can be done by simply going to GuideStar.org, a nonprofit database, and enter the name. If the organization isn’t a 501(c)(3), move on, because your donation might not be tax-deductible.
2) Research and examine the non-profit’s IRS Form 990 tax return and/or the organization's annual financial audit statement. If the organization doesn't file a Form 990 or cannot provide you with an financial audit statement, I would encourage you to give your donation elsewhere. The Form 990 can be retrieved from the organization or from organizations like GuideStar.org.

Finally, remember that money isn't always the most desirable gift for a non-proft. Often, to volunteer your time is the greatest gift that you can give.