Lynne Rosenthal wrote a story for Women’s enews describing her evolution as a donor; she gave $1,000,000 to the Ms. Foundation because she was passionate not only about the causes the foundation supports but also the way it provides funding.  She wrote that it is:

“…a philanthropy that is horizontal and democratic, not vertical and hierarchical…. it is a culture that is just and right and that creates lasting social change.”

We may not have the largess that Lynn has, but we can still benefit from her story and her philosophy of giving.

• Give as much as you can as often as you can. 
  Lynn got started with a $25 donation.
• Be thoughtful - and selective - about the charities you support.
  Take a good look at how the money you give will be used; check to be sure that the charity is real and that a decent percentage of the money you give will reach the people you want to help. 
• Keep track of your donations.
  It’ll make things a lot easier when tax time rolls around if you have good records to document your donations.

You don’t have to give a million to feel like a million when you support causes close to your heart.   As Maya Angelou said, ” I have found that among its other benefits, giving liberates the soul of the giver.”

TAGS: charity. philanthropy, contributions to women, living a rich life, support, taxes, Women and Aging

The tax rebates Congress just approved aren’t a gift or free money.

Congress created a one-time tax credit meant to reduce the 2008 tax bill for most Americans. Normally, you wouldn’t see the credit until you prepared your return next year—the one that’s due in April 2009.

But to stimulate spending, Congress decided to get that money to taxpayers sooner. Checks are scheduled to go out starting in May–$300 for most retirees and disabled veterans, $600 for most other taxpayers and $300 per child, so a married couple with one kid would get $1,500. (There are income limitations, so the amount of the credit starts phasing out for single people with adjusted gross incomes over $75,000 and married folks with AGIs over $150,000.)

You’re basically getting to keep more of your own money. But some folks have had a hard time wrapping their mind around this concept, as well as the idea that these checks are essentially an advance on their next refund.

I think it’s because so many people pay taxes through paycheck withholding. The money is whisked from their paycheck automatically and without their really noticing. So the refund they get every year at tax time feels like a windfall—rather than the interest-free loan to the government it really is.

If you’re getting a rebate check, I have a few suggestions for what to do with it in a recent MSN column. But I’d also like to suggest the following:

1. Whether you’re getting a check or not, check your withholding to make sure you’re not overpaying the government. I believe in giving tax authorities every penny they’re owed—but not a penny more. Getting more money in each check rather than a big lump sum every spring will help you contribute more to your retirement fund, pay off debt faster and accomplish your other goals.
2. Use “out of sight, out of mind” to your advantage. Since we have this mental quirk that doesn’t count money that’s already deducted, take advantage by boosting your automatic savings. Contribute another 1%, 2% or 3% to your 401(k) at work, create an automatic transfer to a Roth IRA or, if you’re already maxed out on those two fronts, set up automatic payments to a savings account to create an emergency fund. Chances are good you won’t miss it, or you’ll adapt pretty quickly, and these automatic transfers will help you create wealth.

TAGS: emergency funds, refunds, retirement savings, savings, tax rebates, taxes, withholding