As the year draws to a close, many of us feel inspired to give back. The holiday season brings joy, connection, and opportunities to make a difference through meaningful end-of-year giving. But with countless organizations in need, it can be overwhelming to decide where to give, how much, and what impact your donation will have. Here are some guidelines to help you make the most of your end-of-year giving.

Why Year-End Giving Matters

For many nonprofits, the last few months of the year are crucial for funding. Studies show that nearly one-third of annual donations are made in December alone, and around 10% of all charitable giving happens in the last three days of the year! Year-end donations can help nonprofits start the new year on solid financial footing, allowing them to plan and implement projects with greater confidence. Chartway Promise Foundation awards grants at the end of the year for the same reason – to better allow their charity partners to plan for the year ahead.

Additionally, making a donation by December 31 can have tax benefits for you. In the U.S., charitable contributions are tax-deductible if made to qualifying organizations, which can reduce your taxable income and, ultimately, your tax bill.

Finding the Right Organization

With thousands of organizations doing important work, finding one that aligns with your values can be daunting. Here are some tips to help you choose:

  • Identify your passions: Reflect on the causes that resonate with you. Is it environmental conservation, social justice, education, animal welfare, or children’s health? Picking a cause you’re passionate about will make the process more rewarding.
  • Do your research: Websites like Charity Navigator, GuideStar, and the BBB Wise Giving Alliance offer insights into nonprofits’ financial health, transparency, and accountability. High ratings often indicate that the organization uses donations effectively to support its mission. Chartway Promise Foundation spends 99 cents of every dollar directly on programming for medically fragile children, so you know your donation is making a direct impact bringing joy, hope and smiles to the children and families we serve.  
  • Local vs. Global Impact: Decide whether you want to support a cause close to home or contribute to global initiatives. Both have unique benefits; local charities allow you to see the direct impact of your donation, while global organizations often tackle urgent issues affecting millions of people.

Understanding Donation Types

There are several ways to give, each with its own benefits and potential impact:

  • Monetary Donations: This is the most common form of donation and can have an immediate effect. Many nonprofits, including Chartway Promise, accept one-time gifts or recurring donations.
  • Matching Gifts: Check if your employer offers a matching gift program. These programs can double or triple your contribution, maximizing your impact.
  • Planned Giving: Leave a lasting legacy by including charitable bequests in your will, donating stocks, contributing from your IRA, or establishing a charitable trust. A financial advisor can help ensure you make an impact while staying financially secure.

Tax Considerations

To make the most of your donation, understanding the tax benefits can be important:

  • Qualified Charities: For a donation to be tax-deductible, it must go to an organization that qualifies under the IRS code 501(c)(3).
  • Itemized Deductions: Only taxpayers who itemize their deductions (instead of taking the standard deduction) can deduct charitable contributions. Consult a tax professional to determine which approach benefits you.
  • Limits on Deductions: Generally, there are limits on the percentage of your adjusted gross income that you can deduct for charitable contributions. For cash contributions to qualifying public charities, this limit is often up to 60%.

Giving Smartly

If you want to maximize the impact of your donation, here are some tips:

  • Ask About Funding Needs: Some organizations are specific about how your funds will be used. If you care about a particular program, reach out to see if you can allocate your donation to that area.
  • Consider Smaller Organizations: While large nonprofits often have more visibility, small, grassroots organizations can make a big difference with smaller donations. Chartway Promise funds organizations of various sizes. For small non-profits, we are their fundraising arm, so they can concentrate on delivering excellent service.
  • Umbrella Organizations: If you're torn between organizations, consider giving to grant-making foundations like United Way or Chartway Promise – this can be the highest and best use of your funds since they’re allocated to where they’re needed most.

Giving Isn’t Just About Money

Finally, remember that giving isn’t only about monetary donations. Volunteering, spreading awareness, and using your platform to share information are also powerful ways to give back. This season, consider what skills, time, and resources you can offer to help make the world a better place.

The Joy of Giving

Whether large or small, every contribution makes a difference. This year, let’s embrace the spirit of giving with thoughtful, impactful donations that help causes we believe in. By giving smartly and compassionately, we can create a brighter future for everyone.

To learn more about how you can support the Chartway Promise Foundation and provide memorable experiences for medically fragile children and their families, please visit www.chartwaypromisefoundation.org.