A Primer on Charitable Donations

   Americans have long responded generously to people in need. Witness the torrent of checks to the victims of recent hurricanes and earthquakes. But while such acts remind us of the generosity of Americans, they also serve as reminders about the financial side of charity, including the proliferation of charitable organizations formed to complement the American Red Cross, Salvation Army and other charities in receiving public contributions and in distributing aid to those who find themselves in need of food, clothing, shelter and medical care.

   You need to be cautious about which organization you give money to in case you know nothing about the one that is soliciting your contribution. If you don’t have time to check it out, it would be better to stick with organizations with which you are familiar.

   It may be useful to review a few pointers as seen through the eyes of the IRS.

   A charitable contribution is a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value.  Such organizations include nonprofit groups that are religious, charitable, educational, scientific or literary in purpose, or that work to prevent cruelty to children or animals.

   Descriptions of such groups as well as examples of both organizations that are not qualified (such as labor unions and chambers of commerce) ...