The Last Day to Make a Tax-Deductible Donation
My wife and I have sent our checks for the year.
My wife went to the Post Office. She sent letters with return receipt requested. It costs more, but we can prove that we sent the money. We have never been audited by the IRS, but I feel safer this way. It's a hold-over from my youth. I want a piece of paper.
I have a rule that I break, but not with most of my donations: "Give to outfits that are smaller. Your donation is more crucial than if you give to a large organization."
I break the rule if a large charity has a program that I think is good, and other organizations don't offer anything like it.
Example: Samaritan's Purse. Because it is a big outfit ($670 million a year), it can specialize in terms of programs. It offers lots of ways to get a payoff from your money. For example, it gives simple gardening tools and training in their use to poor African families. This can sometimes double the output of their small family gardens. They own land (capital). They need to invest no additional labor. This program gets a permanent payoff that will last for years. It provides tools and information. That is high-return capital. The families can sometimes start selling their excess produce. They learn about running a business. So, I get more bang from my bucks.
I usually give to small-scale projects. My money is more important to them because they don't have lots of donors. If I don't donate, they will miss the money.
These charities are usually not large enough to be ranked by Charity Navigator: www.CharityNavigator.com. That site evaluates the efficiency of charities. The top rating is four stars. So, either I or my wife have to know something about their management.
Covid-19 created crises around the world. I donated twice this year to a small church in the Bahamas that gives away food. I know the pastor. He used to be my pastor. He does not waste money. He also does not have lots of supporters. So, my money was immediately useful. But it was not long-term money, unlike money for tools and training.
It's not easy to decide where your money will have the greatest effect. You must take risks on a charity's management. You had better know details about the charity's previous performance -- more than what you read in slick brochures. But when you find one, stick with it.
If you did not find one this year, find one in 2021.