Whether you itemize deductions or just want to make sure your contribution has the greatest impact, taking time to investigate a charitable organization can help you make sure your money is used wisely. Here’s what to consider before writing that check or clicking “donate now.”
How Efficient Is the Charity?
Not all nonprofits are created equal. While many are doing excellent work, others may spend a significant portion of their funding on overhead, marketing, or executive salaries. All of that ends up leaving a small percentage for actual programs. Understanding how your donation is used can help you give more meaningfully. That’s where independent research comes into play.
To get a clear picture of an organization’s effectiveness, it’s important to consult independent review platforms. There are a handful to choose from, but some of the best ones include Charity Navigator, which rates nonprofits on financial health and transparency, and CharityWatch, which takes a look at efficiency and governance practices. There’s also the BBB Wise Giving Alliance for reviewing detailed reports on charity accountability.
Any of these sites can help you spot red flags. Referencing them is also a great way to make comparisons between organizations that serve similar causes. That way, you can feel better about where your money is headed.
Watch Out for Scams
Fraudsters often look to develop lots of scams on generosity, especially during times of crisis. And unfortunately, their phone calls, text messages, and email solicitations can be entirely convincing. You want to make sure you’re handing over your credit card info to a reputable charity, not an unknown caller or by clicking on a random link.
Instead of responding right away, it’s best to take a proactive approach. Make a list of trusted charities, research their credentials, and then set a giving plan for the year. Then you’re not only protecting your money, but ensuring more of your donation goes directly to the cause too.
Ensuring Tax Deductibility
Contrary to popular belief, not all charities are eligible for tax-deductible donations. If you plan to claim your gift as a deduction, you’ll want to double-check that the organization is recognized by the IRS as a qualified 501(c)(3) nonprofit. You can do this quickly using the IRS Tax Exempt Organization Search.
Also keep in mind: cash donations of $250 or more require a written acknowledgment from the charity. Turning to a canceled check won’t be enough. If the confirmation isn’t provided, you could lose the deduction. For smaller donations, though, keeping your receipts and bank records is typically sufficient. It always pays to keep your records in order throughout the year.
We Can Help You Give Smarter
Charitable giving is a meaningful way to make a difference—but those good intentions need to pair with smart planning. At NSO & Company, we help clients ensure their donations are both impactful and properly documented for tax purposes. Whether you’re looking to build a giving strategy or just want to know that your contributions will be tax-compliant, our team is here to guide you every step of the way! Contact us today with any questions.
Also keep in mind: cash donations of $250 or more require a written acknowledgment from the charity. Turning to a canceled check won’t be enough. If the confirmation isn’t provided, you could lose the deduction. For smaller donations, though, keeping your receipts and bank records is typically sufficient. It always pays to keep your records in order throughout the year.
Frequently Asked Questions
Our clients appreciate our fair, transparent pricing — no surprise fees, no confusing invoices. Individual tax returns start at $750, and business returns start at $1,500. If you’d like to talk through your specific situation before committing, a one-hour consultation with a CPA and tax preparer is $250.
Every client’s needs are different, so these starting rates can vary based on the complexity of your return or the scope of services you need. Visit our pricing page for more detail.
If you need accounting, bookkeeping, or tax services, contact us today — we’d love to learn more about your situation and provide pricing tailored to your needs.
We work with a wide variety of individual and business clients across central Indiana. Our clients range from entrepreneurs and small business owners to business professionals, retired individuals, families, and business corporations of all sizes.
Whether you’re just starting a business, managing personal and family finances, planning for retirement, or running an established company, we tailor our accounting, tax, and advisory services to fit where you are and where you’re headed. No two clients are exactly alike, and neither is our approach — we take the time to understand your specific situation so we can offer advice that actually applies to you.
NSO and Company is located in Fishers, Indiana, just off I-69 near the intersection of Lantern Road and 96th Street — an easy, convenient drive from anywhere in the Indianapolis area. Our office is at 8950 Fitness Lane, Suite 100, Fishers, IN 46037.
We’re open Monday through Friday, 8 am – 4 pm, and welcome walk-ins as well as scheduled appointments. If you’d like to speak with someone directly, call us at 317-588-3131.
NSO and Company combines years of experience with personalized service to help individuals and businesses prepare their taxes accurately and on time. We take the time to understand your situation, answer your questions, and look for opportunities to help you maximize your tax savings, while staying compliant and making the process as smooth as possible. Our clients also value our fair pricing and the confidence that comes from working with a trusted local firm.
