Philanthropic Donations: Minding the Ps and Qs of Paperwork

Since 2001, Ragab El-Rashidy has served as CEO and chairman of the board for Genix Therapeutics, Inc., based in Illinois. Some of El Rashidy’s specialties include developing strong investor relationships and coordinating pre-clinical studies. When not engaged in business pursuits, Ragab El-Rashidy takes an interest in philanthropy.

Donating to philanthropic efforts does a world of good for organizations and the causes they support, but donors must take care to mind the niceties of their contributions. For instance, never give cash to an organization. Donors should be able to trace their donations, and cash is difficult to monitor.

Similarly, refrain giving out your credit card number to a phone solicitor, especially when the call comes from a new or little-known organization. Perform a background check on the organization first to learn more about how it uses donations. Always ask for a receipt or a printed copy of the donation, which will serve as a record during tax season.

Charitable donations may be tax exempt, or tax deductible, which have different meanings. The term “tax exempt” means the charitable organization does not have to pay taxes on donations, whereas the term “tax deductible” favors means donations can be deducted from federal income tax returns.