External- The sort described in this blog post, concerned with tax treatment. I would add that one should also look at donor match or company match if concerned with external efficiency

Internal, organization- A number of sites rate efficiency of charitable groups. This is concerned with how much of your gift that, once at the doorstep of the charity actually goes toward the cause you’re concerned with

If you are deducting a kid, im pretty sure any type of donation will automatically count since you’ll be itemizing… Dont be lazy! those deductions add up… Heck, if it gets me $10 back, i consider it a win…

I like posts such as this one even if they don’t directly apply to my country’s rules. They still make me ask questions and double-check that I’m doing the best I can.

Taxes can be quite complicated in the U.S. However, in general, if you itemize your deductions and make charitable contributions, those contributions will likely decrease your taxable income which will probably decrease your tax liability. If you have made the contribution and it qualifies for a deduction, I don’t see why you wouldn’t include it on your tax return if it saves you money.

Keep in mind though that deductions generally become more valuable the higher the tax bracket you are in. A charitable deduction will likely be more beneficial to someone in California making $2 million a year than someone in Florida that makes $40,000 a year, since the person in CA is in a much higher tax bracket at both the federal and state levels (Florida has no income tax and CA has a very high income tax).

1) This isn’t a reader story, it’s a guest informational post. Good info though for Americans.
2) Somebody please fix this sentence – it’s been bugging me for eons – put a TO in there please:

“Want submit your own reader story?”

Keep in mind though that not everyone receives a tax benefit for giving to charity. For example, if you don’t itemize your deductions, you probably won’t receive any tax benefit for giving to charity.

My original article included a section about private foundations but I guess they took it out so the post wouldn’t be so long. If there is interest I’d be happy to write an article about foundations sometime.

In a nutshell, foundations can be great tools for leaving a charitable legacy, teaching and involving family members in philanthropy, etc. Some people see them as a status symbol as well.

However, they also involve much more complexity and compliance than say a donor advised fund, and I normally advise my clients against opening up a private foundation unless they plan on making significant charitable commitments. We’re talking hundreds of thousands of dollars, if not millions. Otherwise the time, energy, and cost of operating a foundation probably isn’t worth it in my opinion.

I have no idea if amount really makes a difference.

http://www.givewell.org

They analyse massive amounts of data and boil it right down to give you the 1, 2 or 3 BEST charities to donate to, the ones that have proven to and will make your money save the most amount of lives. If you’re not looking for what charity to give to I’d still recommend reading their site as it details heaps of mistakes most people make when donating.

Also, great post

1) Is there some minimum amount of money that makes it worthwhile claiming a tax benefit from a charitable contribution? A lot of people will donate say $100 or $200, and say it isn’t worth trying to get the deduction. In my opinion, saving another $25-50 is well worth it. I’d like to hear a CPA’s opinion on this.

2) This is more of a request. I’m a bit curious about donor advised funds and other foundation like tools. Assuming that my saving and investing plans continue unabated for the next 30 years or so, I’ll wind up sitting on considerable assets. One thing that goes through my mind occasionally is figuring out how to turn those assets into some kind of a legacy.