The other day, one of our colleagues posted the following on Facebook:
Now offering FREE voiceovers for charity and animal rescue organizations. Please spread the word…
When I first saw this message, my reaction was mixed. At first glance, it looked like a noble thing to do. Times are tough for charities, so why not help them a little. The less they have to spend on advertising, the more money is left for the cause. What could possibly be wrong with that?
This so strangely coincides with something here and I don’t know if it applies in the US. If I donate time or a bona fide professional service to a charity, I can deduct my costs on my tax return. Spanish Taxes make the American tax system look like a 1040EZ, but it is a legit deduction. I do some work for a local charity that I believe in and support. So if you feel really compelled to do some charity work, this may offset some of the cost.
Always a thought provoking blog here on Thursdays. Can’t wait to see what everyone else has to say!
Ted
Fortunately, I don’t prepare my taxes, but the IRS tells us that Charitable contributions made to qualified organizations may help lower our tax bill. The tax man tells us:
Another “nail on the head” post Paul. Thanks for that.
“Wouldn’t it make much more sense to evaluate each charity and non-profit on a case-by-case basis, before giving your work away?”
Yes, that’s something we all ought to consider. In doing so, there’d be a noticeable shift in which charities receive the most attention. This, one would suppose, would leave some charities wondering what to do next … then the guys at the top would work a little harder … and the distribution of philanthropy may stabilise somewhat.
Well-spotted Mr. Strikwerda!
@Karl: I’m a big proponent of voting with our wallets. In many cases, it has proven to be more effective than voting with our ballots. How and where we spend or not spend our money is one of the most important social signals these days. I’m all for informed giving, whether it’s to a charity or to a for-profit enterprise.
Thanks for reminding folks that non-profits have budgets just like every other business. I used to sell radio as well as website design, and a number of clients were non-profits.
As for the IRS, payments to a charitable organization can be deducted, but fair market value of services rendered cannot. Actual expenses incurred in performing those services can be, but not the value of the services. I’m no accountant, but it’d be worth checking with one before you accidentally deduct something you shouldn’t.
@Matt: Thanks for clarifying the IRS component, Matt. Can you tell why I don’t do my own taxes?
Now it makes even more sense to do the job for a charity; get paid a fair fee and (perhaps) make a deductible donation later.
Well reasoned and insightful as usual, Paul. I have a much simpler litmus test when asked to do pro bono work – is EVERYBODY doing this for free? If the studio, engineer, copywriter, designer are all donating their time and talent, I’ll probably do the same. That is very rarely the case in my experience.
And in the US, if Picasso wanted to come back to life and donate a painting to a charity, he could deduct only the costs of the paint and canvas, NOT the value of the art.
@Donna: I’m not sure I’d use your litmus test, although the idea behind it seems sound. I wonder whether or not I’d get an honest response to the question: “Does everybody else work for free?” Perhaps my years as a journalist have taught me to be highly suspicious. Some people will say anything to save a buck here and there.
Great Paul! Again Paul teaches us to DO OUR HOMEWORK before opening up our mouths. And thank you for the valuable links and resources allowing us to do just that!
@Cliff: Behind every story is another story that’s often more interesting. After many years of school, I have finally learned to enjoy doing my homework!
Thank you so much for spreading the word about Charity Navigator, Paul! I’ve tried to do the same several times on Facebook. My own eyes were opened when I discovered that the local food bank I used to donate $100/yr to was paying its CEO $500K/yr! My hard-earned money literally paid for one of his coffee breaks.
I will rarely work pro bono, depends on the situation. But I do often offer a “half-hour rate” for very short scripts for non-profits.
@Tom: That’s another way to contribute: offering a special rate to charities. As soon as the top earning CEO slashes his or her salary in half, I’m with you!
Very insightful article, Paul!
The questions you raised are the very same ones that always come to mind when giving donations.
Over the years, I’ve reeled in my donations while keeping this simple idea in mind. Since I’m not a major corporation and will never be able to contribute in the way they can; and will never benefit from the publicity of donation at the level they can, I simply keep it close to home. My local humane society or human abuse/crisis, centers, Nashville Mission, police, firefighters, church groups and other groups are always in need of donations.I have a better handle on where that money is going and how it’s being handled inside those groups. I may even see the direct affect of my donations, as a result.
In other words, if we all could just donate locally all across America, we could serve our communities better and maintain stricter control of how well-meaning organizations can operate efficiently. I guess I just believe in the strength of staying LOCAL.
@Rick: I believe in the idea of “Think globally and act locally.” But even local charities need careful scrutiny.
It is important to have a real connection to a cause I’m donating to. That’s why the National Multiple Sclerosis Society is very high on my list.
Very thought provoking, as usual!
Yes, I do pro bono work, but the majority of it is for small, local school teachers (not the schools). Teaching literacy to children with disabilities is a tough job, often requiring a recording with which a child may “read” along to become familiar with the words. However many beginner-level books and stories are not available as audiobooks and, if the teacher is the one reading the story aloud, he or she cannot simultaneously give struggling students individual attention. So I read them and burn them onto a CD for the class to use.
As for the tax issue, my accountant (a retired IRS agent) told me the only way I could deduct my services as a charitable donation was to be paid my regular rate (which then becomes taxable income) and then return the payment as a legally deductible cash donation. Hardly worth the effort.
I applaud you for the work you do, Joe! Have you ever approached the publishers of these books to see if they’re interested in sponsoring your recordings? That way, they could be distributed to other schools and teachers as well. Perhaps organizations promoting literacy for children with disabilities might have funding available for the work you do. Your teachers might also want to check the talking book library at http://www.perkins.org.
Be careful and pick pro bono work with caution…. Oh duh. Would be most folks initial response to that statement. I have found sometimes we need to take a step back and think about the real reason for doing it. I first of all, offer to voice for organizations that I am personally actively involved. Other than that, I typically charge less for not for profit organizations and much less for nonprofit whose admin buudgets are a low percentage of donation revenues.
Unfortunately, like any other product, we can’t give it away and make it up in volumn. Having available time to produce a VO project also comes into play. Then there is the, ever popular, exposure for marketing yourself. I have produced for free, for low rates and more. Each is determined by my own values & judgement. I have turned down some because I simply do not share the same views. In the end, for me anyway, the answer becomes “it depends”.
@CB Bonham: It always amazes me that things that are completely obvious to me, can be interpreted very differently by others. This includes working for a charity. The colleague I quoted at the beginning of my article made a very general statement, to which I object. Every day, so-called charities are exposed as scams, and yet they managed to collect millions of dollars from people who were not careful. They thought that they were just doing a good deed to help a person in need.
It’s also easily forgotten that certain charities have tremendous resources at their disposal, and they have budgets for publicity, just like any other organization. They can afford to pay their CEOs and celebrities very well, and I see no reason why I should give them a brake. I value the work they do, and I want them to value mine.
I morally object to using a charity donation as a means to market myself. Giving in order to get something in return is not a real gift. It’s self-promotion; it’s benefitting from other people’s needs and misery. The highest form of giving is an anonymous gift with no strings attached.
Paul, wise and timely post, as usual! I adopted a policy when I was in my 20’s, that if I wanted to help a charity (usually my church) I would find a way to do it without involving money. I would find a way to donate my services in the most effective way I could. I strictly adhere to this. I have been volunteering with Learning Ally (formerly Recording For the Blind; Dyslexic) for more than 5 years. Joe Van Riper, please check this out. You may be recreating the wheel with your recordings. Learning Ally primarily records texts for learners who have a diagnosed disability, and beginning back in the 40’s, after WWII, for the soldiers returning from war who wanted to go back and get an education. I just checked them out on the site you listed, and I’m happy to say they got 3 out of 4 stars.
@Ann: Thanks for that valuable tip, Ann. I agree that it is important to give back. It’s one of the most rewarding aspects of life. It’s also wise to use tools like Charity Navigator and see how well our contributions are being used.
I appreciate your thoughts and information, I did not know about Charity Navigator. I do pro bono for my church and sometimes the local school district, depending on the group that asks. I do carefully evaluate a charity before I do any work because as you pointed out not all are equal. I also evaluate my giving for the same reason. Thank you for a timely reminder to us all.
What Joe said about receiving payment to donate back to an organization really hits home for me. I donated roughly 400hrs labor to the Sag Foundation to design and build the DLF VOL and was shocked to discover I couldn’t deduct a penny. Tax loopholes are for the wealthy who can pay the lawyers to exploit them.
George, I think you’re being your modest self by saying that you donated about 400 hours to get the lab designed, up and running. Insiders (Like Beau Weaver) know better. The number must be much higher than that.
To see the “house” that George helped to build, watch this video of the grand opening of the Don Lafontaine Voice Over Lab. This tremendous service to the (voice-over) community deserves to be rewarded and stimulated by means of a tax deduction.
Great article Paul. Truly eye opening. Thanks.
Charity, just like Politics, has become a purely commercial business, at least in case of many International NGOs, especially in relation to their operations in Africa, India etc. and many types of corrupt practices therein, which are glossed-over, even if found out by the revenue authorities and in that, except sometimes offering the hired victims / confessors, under a tremendous political pressure. I wouldn’t donate anything unless I see the direct distribution with my own eyes, to the deserving beneficiaries. However, in most cases, it is also known that they operate on a percentage basis, paying commissions and in that, mostly the corporate companies are milked for donations, in which some of the people influencing the decision make money privately or illegally as commission, whereas some really needy and genuine charities operate on shoe-string budgets for want of funds.