A beneficiary is a person or institution who receives benefits from a trust, will, or life insurance policy. For example, when parents set up trust funds for their children, the children are the beneficiaries.
Archive for the ‘Give Page’ Category
A Beneficiary is…
Wednesday, September 23rd, 2009A Matching Grant is…
Wednesday, September 23rd, 2009A matching grant is a pledge to give a certain amount of money to an organization if it raises that same amount from other donors. Matching grants are meant to motivate others into charitable giving. For example, a wealthy philanthropist might tell a nonprofit that if they raise $250,000, then he will match it – doubling the total contribution.
Discretionary Funds are…
Wednesday, September 23rd, 2009Discretionary funds are grants that are given by one or more members of a foundation’s board of trustees and don’t require full board approval.
A Capital Campaign is…
Wednesday, September 23rd, 2009A capital campaign is an effort by a charity to raise a significant amount of money to pay for an important project – like a new building or extensive renovation. For example, a college might have a capital campaign to raise the funds for a new athletic facility.
Heather Box Says There Are A Lot Of Ways To Give
Wednesday, September 23rd, 2009Heather Box is the Deputy Director of The League of Young Voters. She says that she has always been involved with politics – she just didn’t know it was politics at the time. Here Heather tells us how she became a philanthropist with both money and time.
>>TILE brings you exclusive interviews from people doing great things in SPEND, GROW, and GIVE. To view more, click on TILEcasts in the TILE Library.
Have a burning question or someone you’d like to see interviewed? Let us know – just Ask TILE!
Why do you need to keep records of your charitable donations?
Wednesday, September 23rd, 2009The government is prepared to award you tax deductions in return for your charitable donations, but it’s up to you to prove those donations were actually made. The IRS requires a great deal of documentation to ensure that all your donations are legitimate, so it’s essential to keep good records and make sure your chosen charities received everything you gave them. The specific requirements for tax deductions are as follows.
If your donation was money, you need to provide a credit card statement, canceled check, or bank statement that details how much, when, and to whom you donated, as well as written acknowledgment from the charity of how much you paid them and when. If your donation was more than $250, the acknowledgment letter should also include whether the charity gave you anything in return for your donation, and if so, the approximate value of the services rendered.
Property donations also get you tax deductions, but the records you keep have to be much more detailed. Every property donation can be tax deductible only if at least the following records are provided: the name and address of the charity, the date of the donation, a description of the property and its location, an estimated value for the property and how you arrived at that number, and the amount you want to be paid as a tax deduction. If the property is worth more than $250, there are even more rules:
- For property donations from $250-$500, you also need an acknowledgment letter from the charity.
- From $500-$5,000, you must document how and when you acquired the property, as well as how much it cost you.
- If you estimated the property’s value at more than $5,000, you need a qualified appraiser to verify your estimate.
It’s important to keep records of all of the above, as well as any additional documents that can help prove you actually made the donation. If any piece is missing, you probably won’t get any money back.
Why is there a limit to political giving?
Wednesday, September 23rd, 2009Campaign finance laws determine how much you’re allowed to give to a political candidate or party that you support. The limits placed on those contributions might seem unfair – how come you can’t give as much money as you want if you support a candidate? Candidates who get elected wield a lot of power: they write laws, hire companies for big government contracts, and make all sorts of decisions that affect your life and your business. When people give money to a campaign, they gain some influence over that candidate, who will tend to look favorably upon the desires of his biggest contributors because he wants to keep receiving their support.
If there were no limits to campaign contributions, certain people would have way more political power than others just because they have more money, which would undermine the very idea of democracy. Money gives people all sorts of additional power that people with less money don’t have and that is not necessarily a bad thing – money can create jobs or fund the arts or help lift people out of poverty. However, the political freedoms that make our vibrant, dynamic economy possible only exist because of our strong democracy which is based on the idea that all men (and women) are created equal. You only get one vote for a reason; campaign finance limits are just an extension of that same idea.
Should you give down the street or across the ocean?
Wednesday, September 23rd, 2009There’s no cut-and-dry answer for this. You should give to a cause you believe in because it makes you feel good and it’s the right thing to do. Giving to a local charity might be especially satisfying because you’ll more easily be able to see the results of your giving firsthand. However, if you can travel abroad and get involved in or at least see close-up the cause to which you choose to give, that could also be a worthwhile, gratifying experience.
The tax breaks you can get for making charitable contributions come with certain limitations. Foreign charities are not eligible for tax deductions, so you won’t save any money on your taxes if you donate to these charities. Many charities that do work in foreign countries are based in the United States and are still eligible.
Do people pay back microloans?
Wednesday, September 23rd, 2009Microloans are not simply charitable donations, but actual investments or business arrangements where there is some risk involved. Unlike regular loans though, the people who take out microloans usually can’t offer any typical type of collateral – something like a house or car that the bank could seize if the person defaulted on the loan. What motivates people to pay back microloans is a combination of a desire for a better life and, frequently, a commitment to other people in a lending group. For example, many micro-lenders are a part of a group that commits to paying back the loan. This means that if one person “defaults” the rest of the people in the group are responsible for covering their share. Not only does the borrower make a commitment to the institution lending the money, but also their friends or family. Talk about peer pressure!
Paying back a microloan means more than just fulfilling an obligation – it’s the honor of keeping your word and could mean a successful entrepreneurial venture and more money in the home. That may be why the payback rate is so high for microloans – there is actually a lower default rate for microloans than there is for student loans in the U.S.! If you think it’s acceptable to take a “chance’ on an American student’s college education, then helping a man or woman provide for a family might be a no-brainer.
Tracy Gary: Give and Get Giving
Monday, September 21st, 2009
Tracy Gary, a member of the Pillsbury family, is a philanthropist, nonprofit entrepreneur, and legacy mentor who has worked tirelessly to help others experience the joy of giving charitable dollars to causes they care about through her organization, Inspired Legacies.
TILE: What is your first memory of giving?
Tracy: I have always been blessed by being surrounded by generous people. One of my mom’s best friends was a philanthropist. One day he sat me down when I was seven and asked me to help him on some giving he was doing. He had been reading the paper that day and he would always find people that he felt needed help. He said to me, “Always look beyond your own needs. There are always people who have more trouble and more hardship than you, but it takes being awake to others and to trying to always be caring.”
He then gave me $40.00, which was a lot of money back in 1957 – it’s like getting $400 now! Over the next month we visited 2-3 projects in New York that might really use that $40.00. Those were my first ever “site visits” and I have been on over 4000 now. This simple act on Mr. Petrie’s part changed my life forever.
My mother and father were strategic and also very socially networked through their giving. I learned early on that making a difference could happen for others while one also built community. A portion of my allowance was for giving away, another for spending, and another for saving/investing – similar to TILE! By the time I was 14, my parents set up a giving account, and gave me extra money when I volunteered for more than five hours a week. But it was mostly because they were so generous and connected and happy through that involvement that I saw this as a great way to live my life. And it truly has been!
TILE: What suggestions or advice do you have for TILE members who are choosing what causes they want to support for the first time?
Tracy: Think for a moment what really MOVES you to anger, sadness, or action. Start with 1 thing you want to see changed in your lifetime. Think big! For example: I want to eliminate pollution in my neighborhood and in the world. If you are going to live until say, 95, and you’re 20 years old now, in 75 years you can really do a lot!
You may want to keep a notebook or start a file on your computer where you can keep track of your interests, so when you learn about a group or an outstanding leader, you can write it down, bookmark it on your computer, and keep a file of the things that move you. TILE is a great springboard to start your giving. Check out TILE causes, visit organizations’ websites, make donations, go in to see them, volunteer.
TILE: What was the primary inspiration that caused you to devote your entire life to starting, supporting, and working with charities?
Tracy: I have seen great suffering and people who deserve an opportunity to better their lives. I know I have more than I need and that most of us have WAY more than we need. People need food to eat, a home, clothes, a job, and people to connect to.
Giving is a way that I can help others and shape and shift the world I want for myself and other people to thrive in. Life is not just about surviving, it’s about evolving and supporting those around us to thrive and grow and change. For some of us this means giving more and buying less. For others it means getting a better job. For others it means taking care of our communities and the health of our families and the planet.
People care everywhere. If we focus and act with intention, our collective power and love can truly move mountains. Get started today… “BE the change you want to see in the world.”
>> TILE brings you exclusive opinions, explanations, and interviews from experts in every industry. To read more, click on Ask the Experts in the TILE Library.
Have a burning question or an expert you’d like to see interviewed? Just Ask TILE!