The second of two parts

Making charitable contributions is fulfilling, and even more rewarding when done wisely.

It makes sense to know who you’re giving your contribution to, where and how the gift will be used and, where appropriate, how to reap certain tax benefits.

Last week we looked at how to find out more about your favorite charity. Today, more suggestions to help make your philanthropy fulfilling.

Keep records of your donations

You generally want to avoid giving cash. Also, do not give your credit card number to a telephone solicitor you do not know. Give your gift by check or money order so you will have a record for tax purposes. If you are intending to claim the tax deduction, the IRS requires that you obtain a receipt from the charity. The canceled check will not suffice if your donation is for more than $250.

Also, be mindful of gifts and premiums. If your charity gives you a book or a dinner in exchange for your contribution, you must deduct the value of that gift from your contribution.

Know your beneficiary’s tax status

Not everyone realizes that “tax exempt” does not always mean “tax deductible.” Just because a solicitation is for a good cause, doesn’t mean that contributors are eligible to receive tax deductions for their contributions. “Tax exempt” simply means that the organization does not have to pay taxes. “Tax deductible” means the donor can deduct contributions to the charity on his or her federal income tax return. Ask for the charity’s tax exempt letter. If the charity does not have a tax exempt letter indicating its status with the IRS, you cannot legitimately claim your contribution as a tax deduction.

Think about creative giving

It may be possible to significantly enhance your contribution depending on your employer’s gifting policy. A lot of companies match gifts made by their employees or make grants to organizations recommended by employees. Be sure to ask your company how it might be able to help your gift go even further.

Finally, don’t overlook the ways you can help your favorite cause through bequests, charitable remainder trusts, charitable lead trusts, gifts in kind, endowments, donor-advised funds and many other creative forms of giving. It doesn’t always come down to writing a check right here and right now. Talk to your financial advisor, attorney or accountant about strategies for planned giving. Some of those gifts can even hold financial benefits for both you and the recipient.