Making monthly donation to charity is undeniably one of the best actions you can do in your quest to help change the world for the better. Not only are you supporting a good cause, but it is also good for your health. That explains why the vast majority of individuals and businesses continue making donations to charity.
But what if you want to make a monthly donation to charity while staying undetected? Well, there is nothing wrong with that since you can also make this happen hassle-free. In this simple guide, we will examine some of the ways to stay anonymous when giving to charity.
Set Up a Private Foundation
Taking up this approach when making donations to charity gives you a lot of control over investment and grant making. But you should always remember it is difficult to remain anonymous. That’s because most laws require private foundations to report the names of their significant contributors.
This is especially the case among donors who give $5000 or more during a taxable year- on their annual tax returns. Those names submitted are a matter of public record, which helps the government deter abuse.
Offer Direct Gifts to Public Charities
Quite similar to private foundations, public charities must report the names of their significant contributors and reveal to anyone who wants to know the value and type of property donated worth $5,000 or more. That serves as a clue to who is gifting it.
If at all a charity received a large block of stock from a particular company, and a certain executive there is known to be divesting, it is possible to draw a link between the two. For public charities, in contrast to private foundations, the Internal Revenue Service is supposed to obscure the names listed on it before making a Form 990 available to the public. No wonder there is always a slight risk that there’ll be a disclosure fumble by the IRS.
As you can see, there are numerous ways for making monthly donation to charity while still remaining anonymous. The catch lies in determining the option that best suits you needs and approach before deciding on anything.
That means factoring in the pros and cons of each approach before making donations to charity. It is then that you will no longer have to worry about going public once you make a donation.