Charitable Giving and Record-Keeping
Your friend posts a link: "Help flood victims. Donate now!" You have $\$20$ and you want to help. But how do you know the money will actually reach the people who need it? And once you give, how do you keep track of where all your money went? This page answers both questions.
Why People Give
Charitable giving means donating money, goods, or time to a cause. People give for many reasons:
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Values and beliefs. A person wants to help others because it matches what they believe is right.
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Personal connection. Someone whose grandparent had heart disease gives to a heart association.
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Community. Giving to a local food bank or youth sports league helps neighbors.
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Feeling good. Helping others makes many people happier.
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Tax benefits. Some donations to qualified charities can be deducted if a taxpayer itemizes deductions on Form 1040.
A donation does not have to be cash. Volunteering at a shelter, collecting canned food, or giving gently used clothes also counts.
List three reasons people give money or time to charity. Write one short sentence for each reason.
List three reasons people give money or time to charity. Write one short sentence for each reason.
Researching a Charity
Most charities do real good, but some waste money and a few are scams. Before you give, do some research.
Where to look:
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Charity rating sites such as Charity Navigator, CharityWatch, and Candid (GuideStar). They score charities on finances and transparency.
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Form 990. Most tax-exempt nonprofits must file this form with the IRS every year. It is public. It shows income, spending, and the pay of top leaders.
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The charity's own website and annual report. Look for clear goals, results, and contact information.
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Your state attorney general's office or charity registration list. Many states require charities to register.
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The IRS Tax Exempt Organization Search. It confirms whether a group is a recognized tax-exempt charity.
Name two things you can look up to research whether a charity is trustworthy before donating, and say what each tells you.
Name two things you can look up to research whether a charity is trustworthy before donating, and say what each tells you.
Noah wants to donate $\$100…
Noah wants to donate $\$100$ to a charity. Describe three steps he should take to research the charity, and explain how he can tell what percent of donations goes to the cause and what percent goes to administration and fundraising.
Spotting Fake Charities
Scammers love disasters because people want to help fast. Warning signs:
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A name that is almost the same as a famous charity.
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Pressure to give right now.
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Payment by gift card, wire transfer, or cash app. Real charities do not demand these.
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Vague answers about how the money will be used.
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A call, text, or social post you did not expect.
What to do instead:
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Do not click links or reply to the message.
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Search for the charity yourself and go to its official website.
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Check it on the IRS search tool and a rating site.
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Give by credit card or check, and keep the receipt.
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Report scams to the FTC at ReportFraud.ftc.gov and to your state attorney general.
A group of students receives a text message asking for a $\$25…
A group of students receives a text message asking for a $\$25$ donation to a disaster-relief fund. The message uses a name similar to a well-known charity, pressures them to give "in the next hour," and asks for payment by gift card. Analyze whether it is likely legitimate, listing the evidence. Then outline a step-by-step process the students could follow to find and support a reputable charity instead.
Tracking Your Money
Good records show you where your money goes. Without them, you may overspend, miss a bill, or wonder why your account is low. Tracking also helps you stick to a budget, find mistakes or fraud, and keep proof of donations for taxes.
Ways to keep records:
| Method | Strengths | Limits |
|---|---|---|
| Paper notebook | Simple, free, no password | Easy to lose; manual math |
| Spreadsheet (Google Sheets, Excel) | Formulas add totals for you; flexible | You must enter data yourself |
| Budgeting app (fintech) | Links to your bank, sorts purchases automatically, sends alerts | Needs access to your data; may have fees; can miscategorize |
Whatever method you choose, keep receipts for big purchases and donations, and review your records once a week.
Explain why a person should track their spending. Then name two ways to do it, such as a paper notebook or a mobile app.
Explain why a person should track their spending. Then name two ways to do it, such as a paper notebook or a mobile app.
Ethan uses a budgeting app that links to his bank account and categorizes his purchases automatically. List two advantages and two risks or limits of using this kind of…
Ethan uses a budgeting app that links to his bank account and categorizes his purchases automatically. List two advantages and two risks or limits of using this kind of fintech tool compared with a paper record.
Budgeting Giving and Checking Your Records
Giving fits into a plan. Many people set a percentage for giving, just like for saving.
Your records should add up. Unaccounted money is income minus everything you recorded:
$$\text{unaccounted} = \text{income} - (\text{spent} + \text{saved} + \text{invested} + \text{given})$$Camila earns $\$400…
Camila earns $\$400$ per month from a part-time job. She plans to spend 60% on needs and wants, save 25%, invest 10%, and give 5% to charity. Calculate the dollar amount for each category and check that the total equals her income.
Isabella tracks her money in a spreadsheet. In March she earned $\$520$, spent $\$310$, saved $\$120$, invested $\$40$, and gave $\$30…
Isabella tracks her money in a spreadsheet. In March she earned $\$520$, spent $\$310$, saved $\$120$, invested $\$40$, and gave $\$30$ to charity. Calculate how much money is unaccounted for and the percent of income she saved and invested combined. Then design a simple record-keeping system for her, choosing between a spreadsheet and an app, and justify your choice with at least two reasons, including how she could find the missing money.
Back to the start: before donating to the flood link, check the charity on the IRS search tool and a rating site, avoid pressure and gift cards, and record the gift so your giving fits into your budget.