It’s the Season of Giving! Thirty percent of annual giving to nonprofits occurs in the month of December, with ten percent occurring during the last three days of the month.
Why Is End-of-Year Giving So Popular?
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Improves feelings of self-worth and gratitude. People feel good when they give—especially during the season of spending money on holiday parties, travel and presents under the tree.
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You become part of the solution. Donors often find themselves reflecting on the past year and where they are in life, setting goals and resolutions for the New Year. Many times, this includes a desire to give back to the community or a cause they care about.
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Year-End Bonuses. Many individuals receive a year-end bonus or profit-sharing distribution at work and decide to donate a percentage to their favorite charity or religious organization.
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Tax benefits. Donors seize the end of the year as an opportunity to make charitable contributions that they can claim on their tax returns, as well as make gifts to loved ones that qualify for the annual gift tax exclusion. You can claim a federal income tax deduction for charitable donations made to qualified organizations. Your tax professional can help you itemize your deductions and estimate how much you can deduct, so keep your receipts.
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In response to appeals for donations. Many nonprofits market their end-of-year giving campaigns over the holidays, which prompts individuals to act. You may have seen Santa outside the grocery store ringing a bell more than once!
Not everyone makes a once-a-year large donation. Looking for alternatives to making a lump sum cash donation?
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Consider setting up an automatic, smaller recurring donation to a cause that’s close to your heart. You won’t notice the amount taken out of your account each month but will sleep soundly knowing that you’re doing something good. No amount is too small to make a difference.
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Donate your time. Set aside an afternoon to help at a homeless shelter or soup kitchen. Animal shelter and rescue organizations are always looking for extra volunteers. Nursing home residents enjoy visits from people in the community; conversing one-on-one can be a blessing to others.
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Donate blood, plasma, platelets, or your hair. The Red Cross frequently holds blood drives as do local centers such as The Blood Center of Central Texas or We Are Blood. Locks of Love, Wigs for Kids, and Hair We Share are a few of the many organizations that will accept human hair to make wigs for those with medical hair loss.
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Adopt a family for Christmas, and take over the gift-giving for a family or child in need. This is a great way to get your children invested in the spirit of giving. I have each of my children pick a child and together we shop for that child. They are just as excited putting together a package for their “adopted” child as they are opening the gifts they receive.
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