Donors have been increasingly giving more and more through the years. In 2003 alone, more than $240 billion was donated to charities that, in turn, make our world a better place to live in. Surprising, though, is the fact that about 70% of these donations come from individuals, not companies, as many would expect.

You may be wondering why people are devoting their time, effort and finances to such activities. The most probable reason behind the steady rate at which donations are growing may be the tax exemptions given to the donors. And for the average American family that contributes as much as 2% of their income to charities, despite the ever-changing financial climate, tax exemptions are a welcome relief to the working class. Yet isn't it nice to have your cake and eat it too? In charity-tax exemption lingo, isn't it nice to help and benefit from at the same time?

Still, it has to be said that not all charitable organizations offer tax exemptions to their donors. Only organizations registered with the IRS as 501(c)(3) and have been given tax-exempt status are allowed to accept donations and offer tax exemptions in return. All gifts and contributions are then deemed fully tax deductible. Hence, it is safe to check on the status of your chosen charity as to whether or not donating would qualify for tax exemption.

Tax benefits would then depend on how much you are donating and the status of your charity of choice. Yet, it is due to this that the IRS has revised its tax exemptions to filter those who only wish to lessen their taxes. The IRS projects that revenue collection will increase marginally through this revision.

Whether or not donating to charitable institutions is part of an individual or company strategy has raised a lot of issues regarding the "purity" of intentions held against the tax benefits one would get from doing so. Yet in the end, it is really nice to have your cake and eat it, too.

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Source: www.isnare.com