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No matter how much you shop on Black Friday or Small Business Saturday or Cyber Monday, be sure to save some of your money for Giving Tuesday.

Surely there is more to philanthropy than a tax deduction. In fact, at www.GivingTuesday.org, you can learn how to connect with nonprofits in your community and around the world. Whether it’s a gift of money or your time, you’ll find suggestions on how to help others. And that applies not only on Giving Tuesday but every day of the year.

It’s worth taking some time to make sure that your money is going to the best, and most efficient, cause. More than 40% of individual donations to charities are made during the last few weeks of the year.

Eileen Heisman, CEO of the National Philanthropic Trust, points out that most people spend more time researching a new restaurant than they do researching the charities they give to.

So, if you’re going to give, be sure to do your homework. Here are ways to be smart and also generous.

  • At CharityNavigator.org, you can see ratings of thousands of charities, based on their required Form 990 that must be filed with the IRS. If a charity devotes too much money to fundraising or has other warning signals such as excess compensation to the CEO, it will have a lower rating. You also can use this website to search out the best-run charities by cause or category.
  • You don’t have to be a billionaire to create your own private foundation.

Just open an account in a donor-advised fund, offered by financial-services firms like Fidelity, Schwab and Vanguard. Or search for a community-based donor-advised fund. You make a one-time gift to your donor-fund account and then distribute the money to recognized charities in future years. In the meantime, the money in the account grows tax free until it is distributed. If you make a large enough gift to your fund in one year, you can itemize and take a charitable deduction that year.

  • Typically, when you withdraw money from a traditional or rollover IRA, you will be required to pay ordinary income taxes. But you can make a direct gift to a qualified charity with absolutely no tax consequence — and it will count toward your required minimum distribution for that year.

It’s called a qualified charitable distribution. You must be 70 1⁄2 or older to use this provision, and the maximum you can give in any one year is $100,000. The funds must come out of your IRA by Dec. 31.

  • After 10 years of a bull market, you might have some highly appreciated stock. If you sell your shares, you will have to pay a capital gains tax. However, if you gift specific shares to a recognized public charity, you will owe no taxes on the gains and get social credit for a huge gift. The charity benefits because it can sell the stock and use the cash proceeds for its own purposes, also without tax liability.

One reminder: If you are going to itemize your deductions, a receipt from the charity is required if your donation is worth $250 or more. If you are giving goods worth more than $5,000, you’ll need a written appraisal.

Whether it’s a bit of cash to your grandchildren, a donation to an animal shelter or a contribution to a GoFundMe account, your help will surely be appreciated — even if it doesn’t give you a tax deduction. And that’s The Savage Truth.

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Terry Savage is a columnist, author and speaker. Email her at terry@terrysavage.com.

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Terry Savage is a columnist, author and speaker. Email her at terry@terrysavage.com.

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