Back to top

Encompass® Insurance Insights & Articles



Maximizing the Impact of Charitable Donations

Americans donated an estimated $358.38 billion in 2014, a record-breaking amount when adjusted for inflation, reports Giving USA. The holiday season certainly brings out our benevolent and generous spirit, with Thanksgiving through New Year's Eve being the most popular time of year for donations. Many Americans find it easier to donate at the end of the year since they have a better sense of annual income and discretionary spending. With more 1.5 million nonprofit organizations registered in the United States, there's a philanthropic organization for just about every cause!

A sign that says - GIVE.

Considering making one or more charitable contributions this holiday season? Here are some tips to help you maximize the impact of your donations:

1. Select reputable charities.

Whether you're passionate about childhood cancer research, wildlife preservation, or the arts and humanities, take time to research your different giving options. Charity Navigator is an online vetting tool that analyzes how charitable contributions are spent, which recommends selecting charities that direct at least 65 percent of their budget to programs and services rather than overhead costs, like staff expenditures.

According to Charity Navigator, 7 out of 10 charities spend at least 75 percent of their budget on programs and services, and 9 out of 10 spend at least 65 percent. The organization also publishes lists of charities it deems to be in "deep financial trouble" and "low-funded charities with highly paid CEOs" — two warning signs that your contributions may be destined for overhead rather than essential programs and services. You may also wish to check the Better Business Bureau's Wise Giving Alliance, which evaluates and rates charities based on specific criteria.

2. Check for matching employer contributions.

Many larger companies — including 65 percent of Fortune 500 companies — offer matching gift programs as an extension of their corporate philanthropy. Since matching gift program rules vary between organizations, ask you HR department for a full list of eligible charities. Your company may also apply a minimum threshold or maximum limit to their matching gift programs. The most common minimum amount that companies match is $50, with maximums range from $500 to $10,000, according to Double the Donation LLC. Selecting a charity that is approved for matching contributions may increase the impact of your gift.


Family in the kitchen.

Cover home, auto & more.

Encompass Insurance offers protection for the things that matter most.

Find an agent

The general information contained in The Encompass Blog is provided as a courtesy, and is for informational and entertainment purposes only. The contents of this website are subject to periodic change without notice. Information provided on The Encompass Blog is not intended to replace official sources. Although attempts will be made to ensure that the information is accurate and timely, the information is presented "as is" and without warranties. Information contained on The Encompass Blog should not be mistaken for professional advice. Information contained herein should not be considered error-free and should not be used as the exclusive basis for decision-making. Use of website information is strictly voluntary and at the user's sole risk. We encourage you to obtain personal advice from qualified professionals when making decision regarding your specific situation.

Other resources linked from these pages are maintained by independent providers. The Encompass Blog does not monitor all linked resources and cannot guarantee their accuracy. Statements, views and opinions included in an independent provider's material are strictly those of the author(s). These views may not necessarily represent the opinions or policies of The Encompass Blog, the Encompass family of companies or its agents, officers or employees.

ECC Monitor: OK