While many individuals and businesses look to charitable giving as an end-of-year tax planning strategy, not everyone (or every business) is in a charitable mood. Indeed, it is easy to be viewed as a “Scrooge” if you don’t get into charitable giving, but there may be genuine reasons for not donating this year.
This post will highlight four ways to decline charitable donation requests without being chastised.
You don’t have a personal connection to the charity – At its core, giving is about helping people you care about. So most giving is likely to occur with charities that the person or business has a connection to. However, if there is no such connection, there should not be any pressure (or incentive) to give.
You’re unsure about the charity – In addition to not having a personal connection, not knowing about the organization is another legitimate reason for not giving. In prior posts we have noted that looking up a charity through the IRS.gov website is a possibility, but doing extra homework may be in order. If you don’t have the time or desire to do that, don’t give.
Business relationships change – As well mentioned earlier about not having personal connections to a charity, your relationships may change with charities as well. You may have a new charity that you pledge to support, so you may not give to a particular charity this year.
You don’t have the finances – It may seem easy to say that you don’t have the money to give this year, but when you consider your tax bill, new expenses with business expansion in the coming year, and bonuses to be paid, you simply may not have the money.
Nevertheless, if you need guidance on how charitable giving may reduce your tax burden next year, an experienced attorney can advise you.