According to the American Institute of Philanthropy, more than 68,000 charities were established between 2006 and 2007, and there are currently more than 1.5 million nonprofit organizations in America. Charities cover a wide gamut of issues and causes. There are charities for family planning, African Americans, AIDS, animal protection, the visually impaired, crime prevention, the environment, cancer, human rights, hunger, literacy, senior citizens, veterans, women's rights, and youth. Examples of charities include the American Cancer Society, the Salvation Army, and Big Brothers/Big Sisters of America. There are numerous reasons why people donate to a charitable organization, from personal reasons to tax incentives.
Religion
Many religions advocate that people are supposed to give to charity and that giving is a spiritual requirement. The major religions of Christianity, Islam, and Judaism all emphasize that giving to charity is a main virtue. In many types of Christian worship services, some type of offering is collected for the church or for the poor. Religions also promote tithing, which comes from an ancient word for tenth. Many churches also preach that Christians should give 10% of their pay to their local church.
Feeling Good
According to a 2007 study by University of Oregon economics professor William Harbaugh and psychology professor Ulrich Mayr, people donate to charity because it provides them with a good feeling. The study used brain imaging technology on volunteers as they donated money to a food bank. Results showed that the pleasure centers of the brain were activated by the process of giving. Researchers contend that the study supports the idea of a "warm glow" feeling and that people are willing to take action, even if it does not directly benefit them.
Image
According to a recent economic study by behavioral economists Dan Ariely, Anat Bracha, and Stephan Meier, one of the main reasons people give to charity is to enhance their image; people want to be viewed as charitable. The researchers discovered that gifts given anonymously tended to be smaller, but gifts that were publicized were much bigger. Research proved that a main incentive for giving donations is positive personal publicity.
Personal Experience
Donors often give to charity due to a personal experience. These are often connected to medical or health issues. People who have cancer or know someone who has cancer often participate in American Cancer Society activities. Through donating, people are able to contribute to a cause that they have been affected by or can pay tribute to someone close to them who was affected by it.
Tax Deductions
Individuals who donate to charity may deduct contributions on their federal tax returns. According to the IRS, there are several tips to keep in mind when donating to charity. Contributions must be made to legitimate charity to receive a deduction; contributions to a specific person may not be deducted. Keep careful records of money given through bank records or written communication from the charity, which includes the name of the organization, the date a contribution was given, and the amount. For a deduction of $250 or more, individuals need written confirmation from the charity proving that the donation was contributed and if the charity provided any goods or services in exchange for the donation.
