Guidelines for Giving to Haiti Relief from the Illinois CPA Society

Donate wisely for maximum benefit

CHICAGO, Jan. 20 /PRNewswire-USNewswire/ -- Everyday there are new reports on the tremendous need for help in Haiti. People want to help in any way they can. The Illinois CPA Society encourages contributions but suggests that whenever you make a charitable donation you proceed with care to ensure maximum benefit.  

In an increasingly complex and connected society, the number of groups reaching out for contributions is growing rapidly, as are the ways in which we can give to others. It's no longer just a matter of putting a check in the mail. Donations can be made online or by just texting a word. What hasn't changed is the need to do your homework to be sure contributions benefit those who really need them and do no harm to your own finances.  

Before you give, consider these guidelines from the Illinois CPA Society:

Ask questions. Find out how your donation will be used; what percentage of your contribution goes directly to relief efforts? Is this an organization with previous disaster experience?  Do they already have a presence in Haiti? Get details like the charity's full name, website, address and phone number. Don't contribute to any charity that won't answer your questions or refuses to provide information.

Make sure you're giving to a valid charity. Beware of groups using names similar to larger, respected organizations. Use sites such as the American Institute of Philanthropy's charitywatch.org to make sure the charity is legitimate.  

Take steps to protect your identity. Only provide credit card numbers on secure sites online. Watch out for computer scammers soliciting your help through spam email messages offering to make a contribution on your behalf or claiming to be a disaster victim. Be careful when sharing credit card numbers or any personal information over the phone. Know who you're speaking with and who may be listening to your call.

Consider your payment method. Checks and credit cards are better than cash and help charities to avoid tracking and security problems. Even if you get a receipt for cash, you might lose it. Your credit card statement and checks remind you of your donation. However, don't make checks payable to an individual.

Giving items not money. If you should decide to make donations of clothing or other items, check IRS guidelines. Items need to be in good or excellent condition and you can deduct only the fair market value – about the amount you'd get in a thrift store, not the purchase price.

Keep receipts and records. Remember what you donated and check to make sure the right amount appears on your credit card bill, bank statement, or if texting, your phone bill. Keep those items on hand if you plan on taking a tax deduction. The IRS requires that all monetary contributions, regardless of the amount, be documented with a receipt and a record such as a cancelled check. Written acknowledgement is needed if the donation is over $250.

Check if the charity is qualified under IRS code. If you plan on taking a deduction on your income tax, the IRS also wants you to be certain that the receiving organization is a qualified charity under IRS code. Check Guidestar.org for more information about charities recognized by the IRS.

When in doubt, check with a CPA who can provide the latest information on requirements for claiming a tax deduction, as well as guidance on charitable giving. Also use resources like the IRS website, www.irs.gov and the Illinois CPA Society website, www.icpas.org.

About the Illinois CPA Society

The Illinois CPA Society, founded in 1903, is the fifth largest state CPA Society in the nation, with more than 24,000 members. It is the premier professional organization that represents CPAs in Illinois. During its over 100 years of existence, the Society has advanced the highest ethical and financial standards of the profession, and has been a leader in educating the public on financial issues.

SOURCE Illinois CPA Society