brip blap

If this is your first visit to brip blap, you may want to subscribe to my RSS feed and visit my about page.

This post originally appeared at Consumerism Commentary, one of the oldest and biggest (and best) personal finance blogs out there. Go check it out!

America loves charity

Americans donate over $240 billion per year to various charities, and that’s simply in terms of money; the contributions in goods and services add even more to that number. This is a brief guide to the biggest questions about charitable giving in the US.

photo credit: nukeit1

Decide what’s right for you. First of all, you need to come up with an idea of the type of charity you want to support. The list is almost endless. There are small local charities that benefit a very specific area, and there are gigantic global charities that help around the world. There are charities that try to offer direct help, and those that try to raise awareness. A few things you should consider before deciding on a charity:

1. Is it a “good” charity?
2. How will you contribute?
3. Will you receive a tax deduction?

Is it a “good” charity?

Make sure you agree with the charity’s stated aims. Try to understand what percentage of your contributions will go where you think they need to go. The IRS has a Form 990, “Return of Organization Exempt From Income Tax.” This form is probably your single best piece of information about a charity, because it’s the way the government prevents abuse of tax-exempt status.There are almost 2 million American charities; specifically you should seek out “qualified organizations.” A qualified organization is called that because it qualifies for a tax deduction. These organizations include religious groups, public schools, not-for-profit hospitals, parks and a variety of other groups. If the organization is not qualified there is no barrier to giving to that group, but your donation will not be deductible.

You can view a charitable organization’s Form 990 to find out more about that organization’s mission and programs. The IRS Form 990, “Return of Organization Exempt From Income Tax,” can be thought of as the financial statements of a nonprofit organization. The form gives information about the organization’s finances and how money collected is spent. Keep in mind that although some groups may spend more on overhead than others, that does not necessarily disqualify a group from your consideration. Larger nonprofits may have more expenses for outreach or large, multi-year projects. If you have any concerns about how the money is being spent, you should contact the organization and ask them for more information; if they won’t provide it, that’s a good indicator!

Resources:

• Charity Navigator
• Guidestar
• IRS Form 990 [pdf]

How will you contribute?

There are three basic ways to contribute to charity: money, goods and time. All three have value, and you should never let yourself feel badly because you can give one way and not another. A busy traveling salesman may not have the time to work hands-on with a charity group, but he can donate money or goods. A college student may not have extra cash or goods but can certainly contribute time. Everyone can give something:

• Give money. Obviously this is the simplest way to contribute, and usually it can be done quickly by going to a web site or mailing a letter. Many charities struggle to raise money, and every little bit counts.
• Give goods. You may think that old, gently worn coat will never been worn again, but there are plenty of organizations who would be thrilled to give that coat to someone who needs it. Clothes, books, almost anything that is in decent condition can be given to worthwhile organizations like the Salvation Army.
• Give time. A lot of people give money and goods to charitable organizations, but many of them need the gift of your time more than anything. From answering phones to building houses, many organizations deeply appreciate the time you can give them to help them spread their message or even complete their core missions. You can even under certain circumstances donate your professional services to an organization.

Will you receive a tax deduction?

Some people may think that it’s improper to discuss tax writeoffs when talking about giving. The US government has chosen to create an incentive to giving, though, and there’s no reason not to take advantage of it. Of course, if you can only really receive the benefit of these deductions if you itemize. If you give money or other gifts (stocks, goods, etc.) and the charity has the proper Internal Revenue Service (IRS) status, you may be eligible to deduct some or all of your contributions. The rules were significantly tightened in 2007, however. A few basic pointers:

• Starting in 2007, you need a receipt for ANY donation. The old limit of $250 has been eliminated, so even a $10 bill in the collection plate requires a receipt if you want to deduct it.
• You may deduct up to 50% of your adjusted gross income in one year for charitable donations (certain contributions, though, may have lower limits).
• If you give more than 50%, you can carry the excess forward for up to five years.
• If you donate goods to an organization, it must be in good condition or better in order to be deductible – and if it’s worth more than $500 you have to get a professional appraisal to prove its value.
• If you receive something in return for your donation, you can only deduct the excess of your donation over what you received; so if you paid $100 for a charity dinner with a value of $30, you can only deduct $70.

Your best resource for figuring out the rules, since they may change once again? Go to the source: Publication 526 from the IRS website (that’s the 2007 version - the 2008 version isn’t ready yet). If you have any concerns, make sure you talk to a tax professional about your specific situation.

While there are a lot of rules surrounding the deductibility of donations and a lot of suspicion over some recent charity scandals, it is important to remember that the great majority of charitable organizations exist for one reason: to help. It’s also important to remember those less fortunate, and extend what help you can. You can even be a little selfish, because one of the biggest benefits of giving is that you’ll feel great about doing it! Remember that you’re a customer, and just like any other time you’re giving up your hard-earned money you should know whether it’s a good idea or not.

Popularity: 1% [?]

photo credit: jenn_jenn

Once upon a time there was a promising young lad entering the big time. He had a bit of a temper, but he was extraordinarily gifted at his business and was sought after by one company after another. He came on board with several other young promising lads, and combined with the older leaders of the company where he began work, the executives expected great things of him.

From the beginning, though, the lad had trouble. He grumbled about his responsibilities. First he had too many for such a young lad, then the wrong kind for such a promising lad, and then too few for such a talented lad. Nothing was ever his fault - his teammate didn’t give him the reports he wanted, the manager of the team didn’t give him the right types of work, the head of the company just didn’t click with him (but never the other way around).

But one year, things got even worse. The lad moaned and complained and the whole company suffered. Then tragedy struck - the lad fell ill and it turned out he wouldn’t be able to work on the big sale that was coming up that year. As he sat on the sidelines, his colleagues rallied and the slow unassuming lad who took his place did what was needed and didn’t complain. His colleagues were so pleased not to hear the incessant whining and complaining that they rallied and had an unbelievable year. They won one big sale after another, finally defeating even the Foxboro, Massachusetts branch in landing the biggest customer of the year.

So you would think the young lad would learn his lesson, and come back humbled. Without him, his colleagues had rallied to take the lead in their company.  The young manager of the team had become a true leader, and they had succeeded beyond all expectations.  They were happy… except that they dreaded the young lad’s return. He complained and fought with the managers, all before he had started back to work.

Finally, the company had enough. They transferred him to New Orleans in exchange for some muffalettas and daquiris for the next Cinco de Mayo party. Relaxed and relieved to be rid of the gifted, talented young lad who nevertheless simply never fit in and never worked as part of the team, they prepared for another run at the big sale.

And the moral of the story…

Don’t be your company’s Jeremy Shockey.

Popularity: 1% [?]

“Chaos is the score upon which reality is written.” - Henry Miller

photo credit: Atilla1000 (@Holiday)

Last week I taped an interview with Tess Vigeland of American Public Media’s Marketplace Money show. I was interviewed along with Jim of Blueprint for Financial Prosperity (he’s already mentioned the interview) and Lynnae of BeingFrugal.net. I’m not sure when that’s going to air but I’ll certainly announce it once I find out. It was a very interesting experience, and we had a lot of fun doing it, which will hopefully come through when the interview airs.

Other than that, my internet connection has completely died and I’ve had to order a whole new connection through a different company. It’s a long story, but it’s completely gone and right now, in fact, I’m posting this post using a neighbor’s (unsecured) wireless account. So forgive any spotty posting or replies to email for the next few days while I get my new high-speed system set up. You don’t know what you’ve got ’til it’s gone, as Cinderella (warning, opens a video) can tell you. That’s why I’m posting a link roundup on Monday - that and the fact that I was up to my ears in poopy diapers all weekend. I meant to have this post up this weekend but couldn’t get to it until today.

On to the links, from The Money Writers and others:

Even the Rich Can Buy Too Much House: The richest person on the planet can live beyond their means, and the poorest can save millions. There’s no particular connection between income and wealth-building ability, if you ask me.

From the Front Lines: Changing Your Risk Tolerance Based on a Bear Market: I think one other way that people go a little bit goofy in a bear market is that instead of curling up in a fetal position (so to speak) they become unreasonably aggressive in the riskiness of their investments. If you are an investor and not a gambler, you’ll have a strategy and stick to it no matter what “ze markets” are doing.

Free Credit Scores from Credit Karma: One of the little things that you can’t get from the once-a-year free credit reports from the Big 3 credit firms is your actual credit score. Here’s a company that’s going to give you your credit score for free. I wonder if in the future you’re ever going to have to pay for any information ever…

Who’s Your Favorite - Meet the Money Smart Life Writers: If you ever wanted to witness the slow transformation of a blog from a one-person shop to a multi-person media outlet - which seems suspiciously close to a “magazine” in “Old Media” terms - here’s your chance.

Oprah, Suze Orman, and Debt!: And yes, once again I’m flabbergasted at how people are so terrible at managing their money. I understand not optimizing your money, and I understand struggling a bit - but to dig a hole this deep mystifies me.

15 Fire Safety Tips To Protect Your Home: One of the things that I probably don’t consider too often is the possibility of a “natural” disaster impacting my family. We’re not in a hurricane, earthquake, tornado or (although we’re close to the water, but it’s a big water called the Atlantic Ocean) flood zone. We are, however, susceptible to fire like everyone else.

Add Wind to Your Portfolio with PowerShares Global Wind Energy ETF: Green is in, daddy-o. I actually love the idea of wind energy (see the Pickens Plan) as long as they don’t put one of those giant windmills in my backyard. Just kidding. If it would give me nearly-free energy I’d deal. Here’s a way to invest in wind that appeals to me despite my general suspicions of industry-specific ETFs and funds, since I don’t know much about any of the individual companies.

12 Tips to Prepare Your Finances for Vacation: If I ever felt like I was going to take a vacation again, I would print this list out and use it as a checklist…

Is The U.S. Financial System 50 Feet Beyond The Edge Of The Cliff?: Yes. I have great hopes that President Obama or President McCain are going to sweep in and enact the kind of bold, comprehensive reforms we need to reduce our dependence on foreign oil, fix the corporatist-dominated economy, balance the budget, give everyone access to affordable health care and … and… eh, heck, I’d be happy if whoever gets elected doesn’t screw anything up any worse than it already is. How’s that for a rousing slogan?

As you may have noticed, I have a link to the Wesabe forums on my site now. Over at The Digerati Life SVB talks a little bit about what’s involved and what Wesabe actually is. Check out her post on Mint and Wesabe.

Why Making More Money Trumps Spending Less in the End: A post after my own thinking - you have to make more. Save what you can quickly and easily but don’t try to wring pennies from stones - spend that time figuring out ways to increase your earning power.

Want a Better Financial Future? Consider Moving: Bubelah and I are considering exactly this scenario. We have picked out a location and started looking at homes and jobs over the internet - and we’ve visited once - but we still don’t have a timeframe. I feel like it’s definitely going to happen, though.

Moolanomy’s First Birthday: Moolanomy’s one! Pinyo’s been very helpful and has sent a lot of traffic my way, so I owe him a lot. Happy blogbirthday or whatever we’re calling it these days!

This has nothing to do with much of anything I write about, but any post titled “Escaping The Amish” is going to pique one’s curiosity, isn’t it?

photo credit: ReefRaff

As a final note, I’ve been over and back under and back over the 1000 subscriber mark over the past few days. I know it’s just a number, but it’s a nice round one, and I deeply appreciate everyone who subscribes.  I know how precious every minute of the day can be with our busy lives, so the fact that you’re interested in spending some of that precious time reading these articles that I spend so much of MY time on means a lot to me.  A lot.  Thanks.

Popularity: 1% [?]

photo credit: pshutterbug

Everyone understands that being engaged in your work, life, family and self is key to a happy life. Nobody thinks that you’ll be perfectly fulfilled without a balance - everyone needs to be happy with their family, but you also need outside interests. Everyone needs to feel like they are a contributing member of both a family and a society. It’s not an easy balance for most of us.

I struggle with it - I make good money but due to commute times I leave home earlier than I’d like and leave for home later than I’d like. Bubelah struggles with it - she spends a lot of time devoted to child care now that we have two kids. It’s a struggle most big-city residents face, and really that most people in America face.

Yet at the same time most of us feel that we have to struggle with work/life balance. You will not gain financial independence quickly as an employee, although there are those who disagree with that statement. If you want to be rich and therefore gain some measure of independence in your financial choices - and therefore in your life, you have to start a business or buy real estate or be the 1 in a 1,000,000 person who understands the market. Alternative income is key to building wealth. But I am not just talking about figuring out a way to get rich.

Why is it that we view work/life balance as a struggle, a conflict to be resolved? I worry about it more than I worry about most things in my life - and I’m a worrier by nature - but I am trying increasingly to focus not so much on work/life balance but on how to move towards integrating work and life together in the future. I don’t think balance is truly possible. If you work a long commute away from home, most of your waking time is spent away from “life.” If you spend all of your time at home, it’s hard to develop your career or interests. Again, figuring out a way to get away from selling your time for money is key. The key is not to strive for balance, but to find work you enjoy and can integrate with your “life,” instead of working hard then retiring early, or thinking that working an eight-hour day with a three-hour commute and having a few hours at home is balance. Figuring out a way to do it in a blended way is better than trying to figure out a balanced way - because if you sell your time for money, there will never be balance.

Popularity: 2% [?]

Before I lost 100 pounds, I had switched doctors about five times in eight years. Each time my health insurance provider changed - and the company I worked for seemed to enjoy doing it annually - I had to find a new set of health care providers. Because of this, I seldom went for checkups, preferring to wait for an illness to visit. The doctor, seeing me for the first time, would not have much of a baseline by which to judge my health. I’d usually see him for a few minutes, get a prescription for whatever ailed me, and leave. If my blood pressure was high (and it almost always was - remember, I weighed 300+ pounds), I was warned to exercise more and eat less salt. For someone who was not exercising at all and eating a diet primarily composed of pizza, that was a tall order. But the sad thing is that the usual assessment from each doctor was “you are doing fine, just eat less, exercise a little more.”

Then I finally settled on a doctor and went to see him a few times. This was already after I had launched into my 100-pound weight loss regimen, and I was quite proud of myself. I told him all about my success to that point, having lost about 40 pounds. I was convinced that he would lavish praise on me for my success.

Instead, he did what (I think) a good doctor - or mentor of any sort - should do. He told me that wasn’t nearly enough. He pointed out that weight loss was fine but my exercise habits were poor. He told me that while my blood pressure wasn’t high, I was young enough that it should be much lower. He told me that I was still obese and that I shouldn’t be proud of my “success” - only proud of a good start.


photo credit: Sugar Pond

That was a slap in the face for me. After talking to him, I realized that losing 40 pounds wasn’t enough. I realized that weight loss wasn’t the goal - health was. I started exercising - at first riding an exercise bike, then walking on a treadmill, then running on a treadmill, then running outside. I took the low-carb diet I was on and modified it; I cut out the sausages and red meat and concentrated more on leafy greens, chicken and fish.

I would like to say it was easy, or that my doctor was encouraging. He wasn’t. He also wasn’t the primary source of inspiration for my journey to health - I was, mostly out of fear. But having a doctor who wasn’t afraid to be in my face and challenge my assumptions about my health helped a lot. Having people in your life who are willing to lose you as a “customer” (so to speak) or as a friend or colleague by putting the truth in your face is rare, too.

Other moments in my life have provided similar slaps in the face: reading Rich Dad, Poor Dad (yes, I know, I know). I was certainly an expert in the earn more, spend more personal finance systems: how to make a lot but never to think about what the end game was (answer should be financial independence) or whether working 15 hour days was really worth that great salary. Kiyosaki at least challenged my assumption that this was the only path I had open to me after starting down my career path.

Nobody likes to hear they are fat, or out of shape, or lazy, or watching too much TV, or spending too much, or working too hard or even dressing sloppily. It is hard to face the truth, and hearing it when you’re not in a mindset to receive it is pointless. But the question is this: why aren’t you ready to accept the truth? Why wouldn’t you want to improve your life? Leave yourself open to good advice. Here are five things to remember:

1. You are not always right. Most people struggle with the concept that they are not always right, which is odd when you stop to think about it. I understand that I am not omniscient. I also understand that I make mistakes. Yet at the same time, I’m often convinced that “my way” is right and that someone else’s way is wrong. Think politics, for example. It’s hard for most people to accept that their way is not always right. But repeat to yourself: I do not have an open connection to universal truth. The possibility that I am wrong about something is critical to self-understanding.
2. Listen. Wait for someone else to finish speaking before you start. In fact, wait one breath before launching in. I had a terrible habit for years of finishing other people’s sentences - still do. But I fight it now. Keep your ears open as well as your mind - and that’s hard to do if you are verbally stumbling over other people’s thoughts.
3. Ask questions. People love to be asked questions. When my doctor criticized my health despite what I felt was a good start, I asked him several questions. His answers reinforced his point even further. I remember one in particular: I asked “well, isn’t this pretty good compared to most other people?” He laughed and asked me if it made the least bit of difference to me whether it was good compared to others or not.
4. Challenge. At the same time, if you don’t buy what someone’s selling, challenge them. Don’t argue - challenge. The difference, to me, is that an argument is a series of statements. “I like Tuesdays.” “Tuesdays are the worst, I hate Tuesdays - Wednesdays rock.” A challenge might sound like this: “Why do you like Tuesdays so much? Really, what’s the reason?” At least it advances the understanding of what’s being discussed.
5. Seek out people (or books, or websites, or whatever) with different belief systems. I can tell you one thing from my years writing a political blog - if you spend all of your time around people of one political leaning, read that political leaning’s publications and watch their shows, you’ll have a tough time with the four steps ahead. Expose yourself to other ideas. If you’re an ardent low-carb dieter, read about vegetarianism. If you’re a Christian, read the Buddhist Scriptures. If you’re a firm believer in the evils of Communism, read Ten days that Shook the World. You get my drift.

Keep your mind open to new possibilities… and remember that learning new things is one of the keys to happiness. If it helps you improve your health or your finances or your relationships or your career or your life, too, well, then … schwing! Bonus.  I don’t want to pretend it’s easy - I struggle with these points daily - but being aware of the need to change is half the battle.

Popularity: 2% [?]

photo credit: Unfurled

…that we are at the end of all things, and the scary things that go bump in the night are coming. In that post six months ago I imagined that zombies would be running rampant in the streets and Drusilla would be fluttering around [...]

Read Full Post »

Popularity: 2% [?]

photo credit: mac_filko

I recently saw “Growing Up On Tour”, a documentary about Peter Gabriel. I’m no huge fan of Gabriel - like everyone else who grew up in the 80s I knew his big hits - Sledgehammer, Red Rain, In Your Eyes and so on. But [...]

Read Full Post »

Popularity: 2% [?]