Newsweek - USA (2021-02-19)

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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FEBRUARY 19, 2021