The holidays have always been a time of reflection for me. Whether it is by family, religion or just the holiday cheer you see on people’s faces, I feel inspired to reach out to those who are less fortunate. When deciding what to write about this week, I began researching various facts about charities and their circumstances in this current recession. Not surprisingly, according to Charity Navigator, America’s inability to sustain their previous levels of gifting has resulted in the biggest drop in charitable giving in fifty years.

Then I came across the most astonishing fact and it was like an ice crusted snow ball hit me in the head: Approximately 40% of the world’s population survives on less than $2 per day; and 11.1% of our own nation’s households (13 million homes) were “food insecure” and faced the challenges of hunger even before this recession began in 2007.¹ My focus and thinking was headed in the wrong direction-it is not about the conditions of charities; it is about the causes of these organizations during both good and bad times. It seems we get caught up in our own struggles, when in the big picture they are so minute… God has surrounded us with an abundance of blessings even in the worst of times, so I encourage you to consider reaching out in whatever manner you can.

To get you started, here are a few tips, facts and ideas, both monetarily and otherwise:

Don’t know where to start? Don’t forget to look close to home. Charities that provide direct services to people in need experienced the largest drop in donations last year; yet these are the very organizations that experience the greatest increases in demand during a recession.¹ Think food banks, shelters, crisis organizations, social services, meals on wheels, etc.

Can’t give monetarily? 4 in 5 charities report that they use volunteers.¹ Ask your local charities how you can help. And/or consider donating new or nearly new items. Or sell these items on Ebay, Craigs List, etc. and donate the proceeds.

What percentage of your gift goes to the cause? First, research your charity: the Better Business Bureau (bbb.org) has a link for investigating most charities; the Charity Navigator website (charitynavigator.org) is devoted to providing you information about everything from how much of your money is spent on what… to their ethical practices… to how much executives and leaders are paid to manage the charities… some pretty interesting stuff. Then, just trust your charity to utilize your gift wisely: donations designated for specific activities can hamstring charities and become a roadblock in the charity’s quest to do good work.

Don’t need your paid life insurance policy? Though the benefit is delayed until death, a gift of a life insurance policy can benefit a charity significantly. Additionally, like any charitable contribution, the value of the policy is tax deductible, based on the lesser of the policy’s fair market value, provided by the insurance company or premiums paid.

What about IRA or appreciated stock that you don’t think you’ll need? Now you’re thinking outside the box! There are a few pieces of legislation ending this year which pertain to certain tax incentives, so I encourage you to speak with your Life Planner and other necessary professionals as soon as possible to see if you qualify. And remember: tax incentives for charitable giving are about encouraging you to reach out, not about cheating the government.

Want to get your family involved and keep them involved? Talk with your Life Planner about setting up a family foundation and name your children and/or grandchildren as its board of directors or trustees who choose the philanthropic causes to support on an annual basis.

During this holiday season… Be Inspired! And God Bless!

VSR does not provide tax or legal advice.