Periscope PERSONAL FINANCE
While that number exceeds philan-
thropic efforts for previous disasters,
help is still needed. Only 5 percent of
such fundraising was directed to per-
sons and communities of color, despite
being disproportionately affected by
COVID-19, the CDP report found.
Charities across the nation are
struggling as donations drop and
demand for their services rise thanks
to pandemic-fueled layoffs. Half of
charities anticipate donation drops
of at least 20 percent from May 2020
to May 2021, according to a survey by
the Charities Aid Foundation of Amer-
ica. At the same time, Feeding America
reports there has been a 60 percent in-
crease in the number of people seek-
ing assistance from its food banks and
that an additional 8 billion meals will
be needed through June 2021.
Maximize the impact of your giving
by selecting nonprofits that apply 60
percent or more of each donation to
their programs and services, rather
than administrative or other costs, ac-
cording to the watchdog group Char-
ityWatch. Use websites like Charity
Navigator, CharityWatch or BBB Wise
Giving Alliance to review the charities
you’re considering giving to and avoid
potential scams or bad actors.
If you need help finding a worthy
organization, Charity Navigator has
compiled a list of well-reviewed non-
profits providing different forms of
pandemic assistance from medical
services to providing health supplies
to helping communities deal with the
stress of COVID-19.
Finally, if employed, check with HR,
your company’s employee handbook
or workplace intranet, to see wheth-
er your company offers a donation
matching program, allowing you to
quickly double the impact of your gift.
Says Baker, “This is an amazing
opportunity to care for each other as
neighbors and Americans.”
altogether in 2020 thanks to layoffs
and economic uncertainty, according
to a FinanceBuzz survey published
in August. And almost a third tapped
their retirement accounts, sometime
in 2020, pulling out $6,757 on average,
to cover expenses and job loss, a Mag-
nifyMoney survey found.
If you’re now on sounder financial
footing and don’t have high-interest
debt, consider using the stimulus to
bring your savings rate back up to
where it was before COVID-19 or as a
way to replace the funds you had to
withdraw.
You can still contribute up to
$6,000 (or $7,000 if you’re age 50 or
older), to a traditional IRA or Roth IRA
until April 15 of this year and have it
count on your 2020 tax as a way to re-
duce your taxable income. However,
401(k) and 403(b) contributions will
count for the 2021 tax year.
Help out Others
if you have your current bills
covered, little or no debt and ample
savings,consider helping others get
on such enviable financial footing by
donating all or a portion of your stim-
ulus payment to a worthy nonprofit
that is providing pandemic relief to
struggling families.
“If you haven’t really been finan-
cially impacted by this pandemic,
consider helping others with these
funds,” says financial planner Michael
H. Baker, co-owner of Vertex Capital
Advisors in Fort Mill, South Caroli-
na. “Find a family or two that could
use groceries or help with some bills.
Support your favorite local business.”
In the first half of 2020 alone, more
than $11.9 billion in global donations
went to COVID-19 related causes, ac-
cording to a report by the Center for
Disaster Philanthropy and Candid.
“The ˽rst Tuestion
to ask is, what
is causing me the
most anxiety?
What is keeping
me up at night? ”
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