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Sunday, December 28, 2008
Here’s the Deal: Giving good for needy, taxes
If you have been thinking about giving to charity this year but haven’t yet, now is the time to do it.
Not only is this a good time because of the poor economy and the many people in need, but you can get credit for your donation in the 2009 tax year. The deadline is Wednesday, Dec. 31.
But, with so many charities and not so much time, it is important to consider where your donation would fill the greatest need, what to watch out for and which outlets will give you a tax write-off for your efforts.
The first place to start is to identify where you want your money to go. Mary Jo Sellers, a representative from Goodwill Easter Seals Miami Valley, suggests finding an organization whose mission dovetails with your interests.
“All nonprofits are not created equal,” Sellers said. “And if you’re not sure, do your research. There are lots of ways you can help.”
John North, the president of the Dayton-area Better Business Bureau, emphasized the increased need this year, but also warned of some things to watch out for when deciding where to donate.
“With the economy the way it is, there is even more need than in past years, so people can feel even better about their gift this year,” North said.
“However, there are also a lot of scammers out there.”
North said things to be wary of include groups that sound very similar to other well-known organizations, or those who try to put a time frame on your donation.
“Any good charity is willing to give you time and will accept your money at any time during the year,” he said.
He also suggested asking lots of questions — he said a good charity is always eager to answer questions.
Ask about the mission of the organization, who they serve, where the proceeds go, if the money stays local — whatever is most important to you.
The Better Business Bureau also has a list of charities on their Web site (dayton.bbb.org) that they check against 20 standards of trust that may help you make your decision as well.
Rules on deductions
You can claim charitable contributions to qualified nonprofit organizations that have been approved by the Internal Revenue Service.
Some of the qualified groups include religious organizations, nonprofit schools and hospitals, public parks and recreation facilities, war veterans’ groups and charities, such as the Salvation Army, Red Cross, Goodwill, United Way, Scouts, etc.
Some groups that do not qualify include labor unions, homeowners’ associations, individuals, tuition and lottery tickets.
For a contribution of cash, check or monetary gift (regardless of amount), you must maintain as a record of the contribution either a bank record or a written communication from the organization.
You generally can deduct the fair market value of any property you donate to qualified organizations.
But remember, the fair market value of items such as household goods and used clothing is usually much lower than the price paid when new, and it is something that you have to determine.
Eric Erickson, a representative for IRS media relations in Ohio, said: “When you are trying to figure out the value of an item, consider what you could get for that item at a garage sale.”
Erickson and North both stressed getting documentation for any donation.
“As far as documentation, receipts for tax purposes are going to be your best option, and you will only need those if you are audited,” North said.
There are limits on contributions that exceed 20 percent of your adjusted gross income, so if you are making sizable donations, check with the IRS for specifics.
For a complete list of accepted charities and more information, visit the IRS Web site at www.irs.gov and search for publications 78 and 526.
For more information, call the IRS at (937) 610-2182.
Shopper of the Week
Jenny Rapson of Dayton co-authors the blog, momminitup.com, with her cousin, Emily Berry of Germantown.
Rapson said it has “mostly been a mommy blog,” since its inception in June 2007, but that she added a savings component to the site last fall. “Emily is not a crazy couponer like I am,” Rapson said.
“I started couponing almost exactly a year a go,” she said. “I needed a way to save money since I had quit my job five months earlier to stay at home with my kids.”
The site has fun and informative categories devoted to being a mom, such as Pregnancy, Potty Power, and Puke, as well as those for shopping, such as Bargains, Money Making Monday, and Super Savings Saturday.
In the savings categories, Rapson posts items about deals, rebates, competitor coupons and general savings strategies.
“Mostly I just brag about what how well I have done shopping,” she said with a laugh.
Rapson, who has a blog entry called “Jenny and CVS: A Love Story,” is a good example of how a shopper can benefit by finding a store they like and use resources involved in couponing to get the most savings possible.
We will have a Here’s the Deal column devoted to the concept of couponing in January. Rapson said she often shops at the Eastown Shopping Center CVS since they will accept coupons from other retailers.
“Not every store does that,” she said. “You can use one store coupon and one manufacturers’ coupon on one item.”
Rapson said her favorite coupon site is www.thethriftymama.com.
“I check that one every day,” Rapson said. “I like it because it updates every day and posts coupons for several different stores.”
Shopper of the week info box
Who: Jenny Rapson, 31, co-author of momminitup.com
Home: Rapson lives in the Belmont area of Dayton with her husband, Bobby, and two children
Work/education: The Dayton Christian High School graduate earned her bachelor’s degree in media communications from Asbury College in Kentucky, and is a stay-at-home mom.
Her response to this week’s topic: “This will be the first year to claim deductions on our taxes.” Rapson said this year she has donated about 15 Blood Glucose Monitors to Hospice of Dayton. She didn’t have to pay for the monitors — valued between $50 and $80 — since she bought them at CVS on sale, using coupons and the store’s Extra Care Bucks. And she even got some more Extra Care Bucks in the deal. She said she chose Hospice because “I think they do great work over there.”
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