Charity is people with more than they need, giving that more to other people who don’t have enough. Charity is recognizing no matter how high you push the thermostat, you aren’t going to get more comfortable; no matter what you pay for your steak, the plate will be clean in 20 minutes; no matter how much gas your vehicle guzzles, the tank will soon be empty, and furthermore, recognizing there are plenty of other people with no heat, no food, and no way to get around – and then giving of your own time and/or money to do something about it. Charity is sharing.
Originally, charity was directed toward basic human need: food, housing, blankets. Over time, those needs grew to include education and health concerns. Today, abandoned and endangered pets, barns, covered bridges, wildflowers, sea creatures, fireworks displays, trees, and art collections benefit from charitable giving as well. Also along the way, responsibility for these needy has largely changed hands. Yes, the government has stepped in.
Government is when someone you don’t know recognizes there are plenty of people with no heat, no food, and no way to get around – and they saddle you with the solution. Charity is voluntary; government is not.
As this is not intended to be a rant on government gone wild, I will confine remaining remarks to the subject of charity.
Here in the USA, a lot of taxes are paid, and in a variety of ways. For income taxes, folks are still allowed a deduction for charitable giving. This deduction is phased out under certain circumstances too complicated for this space, but it is my contention that anybody who fits those circumstances has enough disposable income that a tax break ought not be a condition for this sharing.
You can get this tax break by giving money or “stuff” to any 501c3 organization.
Why is this limited to money and stuff? AKA, why does it not include time? It is easy to put a monetary value on money and stuff. $10 is $10, a bag of groceries comes with a receipt, and a used sweater has a ready market value at the neighborhood resale shop. Your time, however, is impossible to value. If a doctor and a school crossing guard both volunteer at a soup kitchen, does one get a deduction for $300 hour and the other get minimum wage? Ridiculous. The rules are set to work with readily measurable things, and that means money and stuff.
Why is this limited to 501c3 organizations? This is IRS code for properly registered and functioning charitable organizations here in the United States of America. This means you can’t take a deduction if you give money to France or organizations in France. You can’t take a deduction if you give money to family members or panhandlers. You also can’t take a deduction if you give money to lobbyists (such as Political Action Committees) because by definition, you are buying something (political favor) if you give money to a lobbying organization.
You see, the bottom line is, you give something tangible (money, stuff) but you don’t get anything tangible (contracts, employment, legislation) in return. Sure, you get those warm fuzzies deep down inside, but that is an intangible benefit with no ready market value. Since the IRS wants money, they stick to things that readily translate into monetary values. (If and when they figure out how to absorb your warm fuzzies, I’m sure they will adapt the code accordingly. Oops. I’m off-topic again.)
In the meantime, for federal income tax purposes, it is absolutely necessary that you keep track of the money and stuff you give away. Get receipts! Cash in the plate on Sunday? Forget it! They really want you to use a check, and they really want your house of worship to track it and give you a formal statement at the end of the year. In fact, if you give $200 or more at one time, they expect the 501c3 to send you a contemporaneous receipt.
Many people stumble over the value of stuff. You are supposed to make a list for each donation, with values by each item. Some of the larger charities now maintain online valuation schedules that you can use to figure this out. In my experience, the standard of “$50 per bag” is, generally speaking, still working, but you would probably get a higher final value if you made the list.
And remember: in an audit, without the receipts and the lists, your charitable deductions could be disallowed.
