Happy Thanksgiving to everyone!
Archives for November 2010
Fact-Checking Charities
With the holiday season coming up, charities are increasing their requests for donations If you want to give (and I’m sure you do), make sure your money goes to those in need.
Unfortunately, it’s fairly easy to set up a charity, and fundraisers can legally keep most of the money donated to the cause Before you donate, find out whether the charity is legitimate You should also find out how your money will be spent.
You can start your research at www.Give.org (associated with the Better Business Bureau) This organization researches charitable organizations to find out how they use the funds they receive.
Here are some tips to help in your research:
- Find out if the charitable organization has a 501(c) status (IRS code for non-profit organizations) Non-profits have stricter requirements, and your donation will be deductible on your tax return.
- Find about how much of each dollar is being used for the cause versus administration costs The more administrative costs, the less of each dollar is being used for those in need Look for the low administrative costs.
- For cash donations, request a receipt to use as documentation on your tax returns All donations over $500 will require additional paperwork, so speak with your tax preparer ahead of time.
- When donating non-cash items such as food, clothing, furniture, etc, You will need an itemized list of the items you donated and the total value Most charities will ask you to value your own items Make sure you get a receipt for your donations with the charity’s information on it.
Do your research and chose the organization(s) wisely This is a great way to help out others who are less fortunate than you during this holiday season.
New Bank Fees – Watch Out
Has this economy made you look more closely at fees and unessential services? Earlier this year, the Credit Card Act was enacted to help consumers That was good for you, but your creditors lost sources of income They want to take that money back The next wave of consumer fees is about to begin (or may have even started).
Banks are upping their fees Here are some examples:
Do you have totally free checking? That’s probably going to change You will need to keep more money on deposit to qualify for free checking.
Do you prefer to make your deposits and payments in person? There could be a fee to use a bank teller.
Do you receive paper statements and cancelled checks by mail? The bank may start charging you for that.
Do you have overdraft protection? Previously, you only paid a fee when you used the service That’s changing My bank now charges $1.50 per month for the privilege of overdraft protection Some banks are even charging you to link your savings and checking together for overdraft protection, along with the additional fee for actually using the service.
Want to open an overdraft protection account for the first time? That could cost you a fee as well.
Banks are implementing these changes to increase their revenue, so watch your statement closely (you should be doing this anyway) Read the inserts in your statements Call to question new fees, and if you’ve already been charged, ask for reimbursement.
If your bank account is costing you too much money, find out what you can do to avoid the new fees If all else fails, take your bank accounts elsewhere There are still banks with good lending and investment practices These banks don’t need to overcharge their customers to make money.