All over the world, there are millions of poor children and orphans whose survival is made possible through the generosity of others. Millions of children continue to live as orphans; and cases of extreme poverty abound. Under all these circumstances, charity and donations become invaluable.
Conditions and Restrictions on Charity
The usefulness of gifts is acknowledged worldwide, but at the same time, different countries have different legislations regarding charity or aid especially when it involves valuable items like cars, houses among others. Such laws are mainly to ensure that people do not cheat their nation’s and organisations through tax exemptions in the name of charity. The laws are also for ensuring that, prospective beneficiaries of aid actually receive those tax-exempt gifts.
Charity and Aid Organisations
As a result of increasing poverty which has resulted in difficult living conditions for millions of people, there has been a growing need for charity organisations. The situation has also culminated in the proliferation of fake organisations. These are usually supposed groups or organisations who claim to solict aid on behalf of the poor, orphans and the needy.
While the legislations on Charity may sometimes protect genuine aid groups and individuals from being swindled by fake organisations, the existence of such deceptive individuals and groups poses a serious threat to the dignified and Godly practice of offering gifts to others.
Tips for Making Gifts Get to the Right People
In the face of legislations and the proliferation of fake groups, the following tips may be useful for individuals who may want to personally, or through their organisations, get involved in helping the needy and the poor through charities.
- Gent enough information on the receiving organisation or individuals: Getting donations to the needy may require the donor’s personal delivery to the beneficiaries or through other organisations. Since the second option is often the case, persons or institutions making donations should always get adequate r information on receiving intermediary organisations. Such scrunity of receiving organisations may include a thorough surfing of the organisation’s websites, checking on its incorporation and other records, its previous activities and its evaluation by authorities in its area of operations.
- Determine the specific area to help: This should be motivated by the question of ‘what are we passionate about?’ It could be poverty reduction, helping orphans, helping to improve education, helping victims of war or any other issue. It is when aid is given to deal with a problem one is passionate about, that one gets a sense of self satisfaction.
- Decide what form of charity to offer. It could be in the form of time (by serving as a volunteer), money or items.
Offering Valuable Assets like Cars as Charity
In the case of donating valuable items like cars to charity, the laws on gifts become even stricter. When giving out a car as charity in the United States, for example, the American Institute of Philanthropy offers the following advice to donors:
- Ensure that the charity organisation is eligible to receive tax deductible contributions.
- Make sure you are giving a receipt by the organisation for the donation.
- One has to bear in mind that non-cash donations are one of the most common grounds for an audit by the IRS.
- If the car is worth more than $500, the donor must complete Section A of IRS Form 8283.
- If the car is worth $5,000 or more, an independent appraisal is necessary.
