This Holiday Season, United Way would like to help you give more, give smarter, and put personal philanthropy back into the giving season.

As you consider your charitable gifts between now and the end of the year, remember that charitable donations are an excellent way to reduce your tax burden, all while doing something for the greater good. While preparing to make any type of nonprofit or year-end gift, we urge you to consider these tips and guidelines.

1. Contributions are deductible in the year made, so be sure and get gifts in early. For example, United Way of Central Jersey must receive gifts no later than December 30th, 3pm.

   Credit card charges made before the end of the year are deductible even if the credit card bill isn't paid until the next year. Similarly, checks which are written and mailed by the end of the year will be deductible for this year even if they aren't cashed until 2014.

2. To protect your year-end tax-deduction it may be wise to make your donation online. To make a gift to United Way, click here 

3. You must itemize in order to claim a charitable deduction.

4. Only donations to qualified charitable organizations are deductible. If you're not sure whether an organization is qualified, you can search directly online using IRS Publication 78. (Keep in mind that churches, synagogues, temples and mosques are considered de facto charitable organizations and are eligible to receive deductible donations even if they're not on the list.)

5. Ensure the charity is efficient, ethical and effective. When selecting where to give, it is important to gather all the facts. Even a quick search will help you separate legitimate charities from frauds, as well as reassure you that your donation is truly helping those who need it most. Charity Navigator is a great online tool that can help you research potential charitable organizations. Remember that United Way of Central Jersey supports local nonprofit agencies through programs that benefit people right here in our community. When you give to United Way, you can be assured you are getting the best bang for your buck.

6. Be wary of crowdfunding sites. Over the past year, especially immediately following a disaster or tragedy when legitimate charities haven't yet determined their planned charitable response, crowdfunding sites have stepped in as an alternative way to give. But don't be fooled by the glossy appearance of these sites with compelling videos and storytelling. With little to no vetting going on by these platforms, they are a very risky way to donate.

7. The IRS requires a receipt for each tax-deductible contribution of $250 or more. Depending on the amount or type of your gift, you may need to provide additional documents with your tax form, such as Form 8283 for each non-cash donation exceeding $500.

8. If you have money taken out of your paycheck for charity, be sure to keep a pay stub, a form W-2 or other document furnished by your employer showing the total amount withheld for charity, along with the pledge card showing the name of the charity. 

9. Gifts of stock can be made by electronic transfer.

   This process works for all publicly traded shares of stock.  To make a gift to United Way of Central Jersey, please call Elizabeth Hance at 732 247-3727.   

10. As the holiday season comes to an end, we hope that you'll remember to be charitable. No matter what your individual situation, you can likely help someone in need. Even if you can't claim a donation, you can give your time, talent and energy. Never underestimate the difference that one person can make. We wish you nothing but the best in all of your charitable endeavors this holiday season. Happy Holidays from United Way of Central Jersey! 

The purpose of this information is to provide general planning information. It is not intended as legal, accounting, or other professional advice. For assistance in planning charitable gifts with tax and other financial implications, the services of appropriate advisors should be obtained. Consult an attorney for advice if your plans require revision of a will or other legal document. Tax deductions vary based on applicable federal discount rates, which can change on a monthly basis. Some opportunities may not be available. 

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