CHOOSING YOUR CHARITY OF CHOICE

The demand for charitable services is always in high demand and you want to do your part. But how can you know whether the money you donate is actually used for the cause you want to support? Verify the charity before you give.

It’s all in the form - The IRS requires charities to make their three most recently filed annual Forms 990 (Return of Organization Exempt from Income Tax) available for public inspection. Form 990 details a charity’s accomplishments and discloses information about fundraising, compensation and governance. You can use the forms to evaluate how your potential choices are using their money and compare different organizations.

How can you get a copy of a charity’s Form 990? GuideStar (www.guidestar.org) and the Economic Research Institute (www.eri-nonprofit-salaries.com) provide free access to charities’ Forms 990 and other data. You can also check the charity’s website or request a copy from the organization or from the IRS. Charities and the IRS may charge a fee to cover photocopying and mailing.

For more say over your money - You might want to look at nonprofit organizations that allow potential donors to choose the specific projects they want to fund. Donors review a list of projects on an organization’s website and choose the one they want to fund. Support can be for an entire project or a portion of it.

To give more - Once you’ve chosen an organization to support, here’s one idea for making a significant donation. If you have a life insurance policy on your life that you no longer need, consider giving the policy to the charity or naming the charity as the beneficiary or contingent beneficiary, in case your family’s circumstances change in the future. When it comes to charitable giving, be sure to consult your legal and financial professionals for guidance.

OPRAH HATES WRITING CHECKS TO THE IRS

Oprah Winfrey told Piers Morgan that the most difficult check she has to write each year is for the Internal Revenue Service, and she usually needs some tequilla from her accountants when she signs it.

Winfrey admitted to Morgan that she only signs checks for amounts over $100,000 nowadays. Winfrey launched her new cable TV network, the Oprah Winfrey Network, or OWN. But she still has “several hundred” checks to sign for over $100,000. “It would knock your socks off,” she told Morgan. “Millions are going out.” Morgan asked if that was painful. “The most pain I feel — and my accountants will tell you this — is every time I write a check to the IRS, it’s a ceremony. For years they came in with wine. Now they come in with tequila. It’s a tequila-signing ceremony.”

Morgan asked her what was the most painful check she ever had to write to the IRS, but Winfrey cannily ducked the question, teasing Morgan, “You’re good. You think I’m going to give you the number. No, no, no, no, no.” Morgan noted that Forbes magazine estimates that Winfrey is worth $2.7 billion, and asked if the figure was accurate. She responded, “I knew you were going to go there sooner or later. I’m not sitting around counting it.” However, she added that she knows how much she’s worth “because I already had counted it.”

Morgan followed up by asking Winfrey about her philanthropic endeavors, which include the Oprah Winfrey Leadership Academy for Girls, a school she runs in South Africa for economically disadvantaged young women. Morgan noted that Winfrey reportedly has given away over $300 million to various charities, and Winfrey corrected him, saying she knew it was more than that amount. He asked if she knew how much she has given away, and she replied, “No, I really don’t, but I know it’s more than $300 million. I have this school and it’s ongoing and I’m responsible for all of these girls and them getting an education, and I pay for every single thing and I think that the charitable work that you do — and when I’m gone everything that I have is going to go to charity because I don’t have children and I believe that that’s what you should do, that that’s how you should live your life. To whom much is given, much should be given back. To me, the money, it’s certainly a wonderful thing, but it is in direct proportion to how you’re able to bless yourself and how you bless others with it.”

Asked whether money can buy happiness, Winfrey responded, “It can certainly pave the way for it.”

STRESS MANAGEMENT

I received this from my good friend, Ken Cassidy. I thought it was too good not to pass on.

A young lady confidently walked around the room while leading and explaining stress management to an audience; with a raised glass of water, and everyone knew she was going to ask the ultimate question, 'half empty or half full?'..... she fooled them all... "How heavy is this glass of water?", she inquired with a smile.

Answers called out ranged from 8 oz. to 20 oz.

She replied, "The absolute weight doesn't matter. It depends on how long I hold it. If I hold it for a minute, that's not a problem. If I hold it for an hour, I'll have an ache in my right arm. If I hold it for a day, you'll have to call an ambulance. In each case it's the same weight, but the longer I hold it, the heavier it becomes." She continued, "and that's the way it is with stress. If we carry our
burdens all the time, sooner or later, as the burden becomes increasingly heavy, we won't be able to carry on."

"As with the glass of water, you have to put it down for a while and rest before holding it again. When we're refreshed, we can carry on with the burden - holding stress longer and better each time practiced. So, as early in the evening as you can, put all your burdens down. Don't carry them through the evening and into the night... pick them up tomorrow.

Whatever burdens you're carrying now, let them down for a moment. Relax, pick them up later after you've rested. Life is short. Enjoy it and the now 'supposed' stress that you've conquered!"

1. Accept the fact that some days you're the pigeon, and some days you're the statue!

2. Always keep your words soft and sweet, just in case you have to eat them.

3. Drive carefully...it's not only cars that can be recalled by their Maker.

4. If you can't be kind, at least have the decency to be vague.

5. If you lend someone $20 and never see that person again, it was probably worth it.

6. Never put both feet in your mouth at the same time, because then you won't have a leg to stand on.

7. Nobody cares if you can't dance well. Just get up and dance!

8. Birthdays are good for you. The more you have, the longer you live.

9. You may be only one person in the world, but you may also be the world to one person.

10. A truly happy person is one who can enjoy the scenery on a detour.

***Save the earth...it's the only planet with chocolate!

CELEBRITY TAX PROBLEM OF THE WEEK

Tax Liens Filed against Bill Clinton’s Half-Brother

This is not a real celeb, but pretty close. Bill Clinton’s half-brother, Roger is facing about $90,000 in tax liens from the state of California and the Internal Revenue Service. Roger Clinton, 54, has struggled to establish a career as a musician and actor after he first drew attention following the election of his elder half-brother Bill in 1992.

California filed a $21,315 tax lien against the younger Clinton last month for taxes owed from 2003, 2004 and 2008, according to the Detroit News. The state had earlier filed a tax lien against Clinton for $2,951 in November, 2009, and for $8,405 in March, 2009. The IRS also filed a lien against him in 2008 for $57,762.

He was arrested for driving under the influence and disturbing the peace in 2001 after he challenged a nightclub doorman to a fight in Hermosa Beach, Calif. Clinton pleaded guilty to a reduced charge of reckless driving and was sentenced to two years' probation and a $1,350 fine. His half-brother pardoned him in 2001 for a 1985 cocaine-related conviction for which he served a year in prison.

INFLATION - I'VE BEEN WARNING YOU

In my blogs, I have been warning that inflation seems inevitable even though Washington tries to tell us that they have everything under control. Well, maybe they don’t. It's time to prepare yourself for higher interest rates and higher costs.

U.S. core inflation, which excludes food and fuel prices, rose 0.3% in May, the biggest one-month increase in the past five years. The annual core inflation rate for the first five months of this year is 2.4%. The accelerating rate is likely to trigger interest-rate increases, experts said. See the full article below.

http://www.thefiscaltimes.com/Columns/2011/06/27/Core-Inflation-Rises-Interest-Rates-May-Follow.aspx

FOURTH OF JULY WEEKEND - BEER, BBQ AND THE TAX ON BEER

The 4th of July is fast-approaching and soon, it will be time for sitting back with some beer and BBQ in the back yard. So, get ready to fire up the grill and pack plenty of ice on the brewskis!

You know the government will never pass up a chance to tax us. There is a so-called “sin tax” on beer. So when you stop and pick up the pack of beer you are paying a hidden alcohol tax and most likely sales tax.

I thought you might want to see what your state beer tax is. The link below will show you the excise tax rates of beer sales for off-premises consumption, as of January 1, 2011.

http://www.taxfoundation.org/blog/show/27160.html

POINTS TO CONSIDER WHEN BORROWING MONEY FROM A RELATIVE

Financial emergencies come up for all of us. You may be forced to ask a relative for financial help because you don’t have adequate reserves to drawn on. Before you consider that route, as either the recipient or the giver, here are some points to consider:

• Even small gifts may come with expectations that might have little to do with the money itself. If you don’t meet the giver’s expectations—showing up for every holiday dinner, for example—the relationship can become strained. Or, if you give money to a family member, you may find yourself scrutinizing the recipient’s future financial behavior.

• Borrowing money from a parent, for instance, may make you feel dependent, even if you pay the money back.

• Lending, rather than giving, a family member money might be a better idea. But, to avoid problems, always formulate a loan contract with specific repayment and interest terms.

Gift or loan, thoroughly talk about the transaction beforehand to make sure everyone is in agreement. In addition, make arrangements with your financial advisor to start building an adequate emergency fund of your own, so you’ll be prepared to handle a financial emergency yourself.