The Benefits Of Donating To Nonprofits – How Are They Similar to Charitable Giving?
There are many benefits to donating to a nonprofit organization. First and foremost, nonprofit organizations are dedicated to serving the community in which they reside. They are constantly working to improve their services and provide better access to their programs for those who need it the most. Additionally, nonprofit organizations rely on donations from the public to continue their work. This is why it is important for those who are able to give to make a donation.
Charity vs. Non-Profits
Charity is the term used for giving to organizations that are not typically classified as nonprofits. The primary difference between charity and nonprofit organizations is that charities are designed to receive no financial return from their work. Rather, their goals are to support other causes or individuals. Non-profits, on the other hand, have a goal of making a profit in order to sustain themselves and continue providing services.
Donating to a nonprofit vs. a charity is fundamentally similar. However, nonprofit donation supports more sustainable causes and use the funds to fuel their mission in an ongoing matter vs. a short-term cause.
Regardless of what motivates you, donating to any cause has a lot of personal benefits. It shows others that you care, and a small gesture can make a difference. Not to mention its personal satisfaction knowing the organization helped society in some way.
Giving makes you happier
Donating to a good cause has been proven to make people happy as well. Studies have shown that giving makes a person feel satisfied, while not donating was linked to feeling rejected and even lonely.
Although it might make you sad, or overwhelmed, to choose a cause in a sea of so many, giving ultimately is your contribution to improving the quality of life for others.
Giving back allows you to feel good about yourself. Considering that there are many awesome charities out there that need donations, it’s easy to forget why we started giving in the first place. Becoming more engaged with our choice not only poles us away from feeling guilt but provides some warm fuzzies as well!
Nowadays it’s tough to remember that contagiousness can be a good thing. However, when it comes to giving, the contagiousness of it is part of the magic.
Have you ever been to a fast-food drive-through, and pulled up to the window to find someone in front of you paid for your order? According to science, it’s likely that your natural response to that will be to spread the act of kindness and pay for the person behind you too.
According to research published in the Proceedings of the National Academy of Science by James Fowler of the University of California, San Diego and Nicholas Christakis of Harvard, when one person acts benevolently, others are inspired to act benevolently later. The study found that altruism may spread from person to person to person to person, resulting in dozens or even hundreds of people being influenced by each individual in a network.
It’s tax deductible
Donating to a nonprofit is tax-deductible. If you are donating to a 501(c)(3) organization, it is deductible on your federal income tax return. This means that the IRS considers your donation a charitable contribution and will help reduce or eliminate any taxes that may be owed. Your tax deduction could also result in a grant from the non-profit which would cover part of the expenses.
Learn more about tax deductions for donations in your state so you can be prepared for the next tax season.
Introduces your family to the importance of generosity
Donating is a great way to teach your children, and close family, about the importance of aiding others. It demonstrates and allows the opportunity to educate those around you that even a little amount of assistance has a big impact on the world. Particularly for youngsters, being charitable will enhance their beliefs in the importance of aiding others.
Find an organization that’s right for you
In a sea of options, it’s difficult to find which organization speaks to you the best. We’d recommend looking for an organization that:
- Benefits the community around you, or a community you feel closest to
- Ensure the cause is validated and not an online scam
- Is a registered non-profit so you can claim the tax benefits
Many people may not know, but donating to a non-profit organization such as Dallas Area Habitat for Humanity is not only a great way to help others in need, but it also has some notable benefits that can make your life a lot easier! Contact us today to find out more about how you can donate to us and reap these benefits for yourself and those in need!