With the term donations, a picture of a charity comes into play with humanity helping the needy. But is that all donations stand for? Well, turns out, it is a pretty wide concept. There has been quite a research conducted on the reasons and factors impacting the donations & charities. With a general perception, donations are hardly taken as business transactions, they are taken more of an act that stands on behalf of humanity. But again, there is more to the concept.
A number of studies have been carried out to understand the reasons behind why some people tend to donate and others don’t so as to bridge the gap between the two. With such studies, a number of approaches have emerged out of it. While some do it for the specific cause, some end up opting it for the sake of getting a decent social outreach.
Most people try their hand at supporting charities in one way or the other. But are they really able to contribute to the extent they want to, still remains a question? Also, many people out there prefer to leave a chunk of their assets to be given out to charities in their will in terms of gifts. It is not necessary to contribute financially, one can follow the acts of volunteering and support otherwise. When it comes to the financial assistance, there are more ways such as offering gifts in kind, charitable annuities, Charitable Remainder Trust, gifts of Life Insurance etc.
Before digging deep into the concept of such charitable donations, here is a bit of introspection done for figuring out the reasons of the act for seeking donations. Read further to know more-
· Influence Works– Yes, surprisingly a majority of the charitable donations comes when a relative or friend asks you to do so. They can, in some way, educate you about it and that’s where the thinking part begins. Research says that social Acts are fundamentally the best reasons of donations. As per a study, people check the background of the large donations done earlier and then offer a larger donation themselves. It may not be necessarily your friends or family who influence us in making such decisions, it can be anybody whom you put your trust on!
· Setting an Example– Giving is undoubtedly a wonderful thing to do and many people take donations as a way of setting the right examples to promote the act. This can create an impact on coming generations and encourage the kind deed to grow a bit. At times, personal experiences are often involved in such cases. Moreover, this adds to one’s social status and image prosperity.
· Tax Benefits– It may not be known to many but donating in charities offer certain tax benefits. A small rebate on the taxes can offer you a lot if one focusses on the bigger picture. In order to lower down the taxable amount, all one needs to do is keep a track of the donations carried out in the year and keep the receipts safe. So, there are many people who deal up in charity specific donations in order to avail the tax benefits involved.
Charity comes as a very strong decision. When one decides to go for a charitable donation, there are a number of factors adding on to the decision.
The very first challenge that comes up is making sure that the money goes to the cause and reach the sufferers. One has to be assured that the charitable donation made is creating an impact on the other end. For the same, deciding an organization operating in the field that supports the cause same as you do, may get difficult. Also, the question of transparency strikes. Whether the money donated is used well for the cause stays another important factor. Here are a few pointers that can be taken into account while donating-
Not Considering Just the Name
Donors often choose the charities on the basis of their names and reputation, informs one of the sources. One needs to go beyond the name and check if the mission of the chosen organization is aligned with the cause the donor is offering the money. The best way to figure this out is to check its website and online reviews. What can be even better is to volunteer for the organization and see for the approaches used to the cause directly there.
Going for Online Directories
In order to check the authenticity of the charity organization, it is important to validate it with the cause you’re empathetic for. For the purpose, refer to online directories like Kyynd & Charity Navigator. This shall help in filtering up details furthermore in terms of accountability, transparency & effectiveness. They put a mirror to the operations of the charities working around.
Check the Results
Another factor that stays important is the kind of results the given charity delivers with effectiveness. Check the sources, volunteers and online data available at trustable sites to ensure that the cause will be treated with respect and effectiveness. It is important that the mission it carries aligns with the impact it creates on the society and the underprivileged.
Make the Decision
Once you’ve figured out the cause & attain get clarity about where to donate, it is important that you check the impact created. One can donate to the cause, any specific charity or even individuals. To figure it all out, check that they are all validated well and serve the issue you’re concerned about. It is the hard earned money in consideration and one cannot afford to be prudent about it.
Donation as an act comes with a number of impacts and behaviors. While it is difficult to summarize the criteria and the exact reasons of donations, it is equally important that everything remains transparent in the system throughout. The decision can bring a potential difference to someone’s life. See that it is taken wisely, hence introspecting the concept becomes imperative.