Make Your Charitable Donations Count

For many donors, supporting a favorite cause comes with the added benefit of a tax deduction, but donations must be made by the end of the year to qualify. December 2025 could see greater end-of-year donations as the ‘Big Beautiful Bill Act’ will drastically impact deductions in 2026. According to Vanguard Charitable, beginning next year, itemizers will only be able to claim a charitable income tax deduction on contributions that exceed 0.5% of their adjusted gross income. An additional cap on itemized deductions will reduce the maximum tax benefit for top earners to 35 cents per dollar donated. This could have a big impact on the group that donates the most, which is people making $10 million a year or more. If you’re giving to claim that tax deduction, get it in now. 

Whatever inspires you to give, don’t waste your valuable dollars on a charity that doesn’t meet your goals, wastes your money, or worse, is a fake charity. 

Does this charity’s mission match yours? The organization that claims ‘conservation’ as its goal could be a group preserving nature today to log or hunt or drill tomorrow.

Are they doing what they promise? Check their website for their actual programming. Are they really tutoring children, giving actual aid to vets or conducting medical research? ‘Feeding the Hungry’ could be an annual dinner in a community you’ve never heard of.

How much money do they apply for their mission? If less than 75% is supporting programming and services, consider looking somewhere else. Truly efficient charities will brag about their spending ratio; it’s a major selling point, and it’s a factor considered by charity watchdogs in making their recommendations. If it’s a charity you know or a cause you truly want to support, ask about their financials. Sometimes a charity will have unusual operating costs or is making capital improvements, so investigate why your chosen organization is spending so much on administration and costs. You may still want to give. 

Are they a recognized 501(C)(3) non-profit organization? This IRS designation means that the organization is using its funds for charitable purposes, and your donations will be tax-deductible.  Remember, the address of .org doesn’t mean that they are an IRS approved non-profit.  

The holidays bring out the best, and unfortunately the worst, in fundraising appeals. The US Postal Service has some words of advice before giving: Give to charities you know. Check any you’ve never heard of, or whose names are similar to well-known charities. Be suspicious of charities that accept only cash and always make out your check or money order to the organization, not to an individual. 

Since 2001, Charity Navigator, a 501(c)(3) itself, has offered a free ratings guide to help you make solid philanthropic decisions. They look at 225,000 organizations and evaluate the ‘cost-effectiveness and overall health of a charity’s program, including measures of stability, efficiency, and sustainability.’ Type in the name of the charity and you’ll see how they are using your donations. Looking for a charity whose goals match yours? Causeway offers lists of highly rated charities by subject, including animal welfare, the homeless, hunger and more.  

The Better Business Bureau, the organization that offers reviews of local plumbers, retailers and service providers, can help you with charities, too. Get tips for making the best of your charity dollars at The Better Business Bureau Giving Alliance. Don’t waste your money or let good charities lose much-needed support to lesser organizations. A little research can go a long way during the giving season!