If you’ve had it with the commercialism of the holiday shopping season, setting aside some time (and cash) to participate in Giving Tuesday (#GivingTuesday) may be just the antidote you need. Held the day after Cyber Monday, one of the biggest shopping days of the year, Giving Tuesday has become the unofficial kickoff to the holiday charitable donations season.
More than a million people made Giving Tuesday contributions to charities last year, for a total of $116.7 million. If you’re planning to partake this year, follow these steps:
1. Give more money to fewer groups. Since every organization incurs overhead costs to process contributions, you’ll lose less money to fees by contributing to fewer charities. Concentrating your donations is a much more efficient way to give.
Related: These Charities Make the Most of a $25 Donation
2. Choose your charities carefully. In addition to finding a group that aligns with your values and works for a cause that you care about, look for a group with 501(c)(3) designation, which means it is recognized by the IRS as tax-exempt and you can deduct your contributions.
Once you’ve selected a charity, do a quick search on sites like Charity Navigator or GuideStar to get a sense of the group’s financial health and to see how efficiently it spends its money. You want organizations that spend as little as possible on overhead, but some causes simply have higher fixed costs.
3. Save your receipts. If you itemize your taxes, you can deduct charitable donations up to 50 percent of your income. You’ll need a written record of all contributions, and for those worth more than $250, you’ll also need an acknowledgement or receipt from the charity itself.
