Tips for Cyber Monday and Giving Tuesday

With Black Friday in the rear view window, it’s time to focus on Cyber Monday, a holiday first mentioned in a NRF press release in 2005. At that time, the organization noted that the sharp increase in web traffic after the Thanksgiving weekend occurred because “consumers may have faster or more secure Internet connections at work and choose to shop there.” Despite having faster connections eleven years later, consumers are still lured by Cyber Monday deals. Shoppers spent $3.19 billion last year on the day and that number is expected to rise this year - according to Adobe Digital Insights, it is expected to be the largest online shopping day in history.

If you are planning to click away, here are Network World’s 12 Tips for Safer Shopping:

• Only download or buy apps from legitimate app stores.
• Suspect apps that ask for too many permissions.
• Check out the reputation of apps and particularly the app publisher.
• Only enter credit card info on secure shopping portals.
• Avoid using simple passwords, and use two-factor authentication if you can.
• Be alert for poisoned search results when using search engines to find products.
• Don’t install software that sites require before you can shop.
• Don’t use free pubic Wi-Fi to make purchases.
• Be suspicious of great deals you learn about via social media or from email addresses you don’t recognize.
• Turn off location services while shopping to minimize the potential personal data that could be compromised.
• Make sure the connection to e-commerce sites is secured (HTTPS).
• Double check the validity of the SSL certificate for the site.

In addition to Cyber Monday, the holiday weekend now extends to Giving Tuesday. Last year, over 700,000 people raised $116 million in over 70 countries and expectations are for even larger numbers this year, because post-election charitable giving has already spiked dramatically. Even before the election, Americans were known for their generosity. The U.S. is the world’s second most generous nation in the world (after Myanmar), according to the Charities Aid Foundation (CAF).

Americans gave $373.25 billion in 2015 and with changes to the tax code likely to occur next year, there could be a surge in giving before the end of 2016. Financial planners and tax preparers are urging clients to step up their charitable giving this year, because deductions are likely to be less valuable or potentially go away, in the coming years.

As you rush to complete your donations, you should be aware that earlier this year, IRS Commissioner John Koskinen said “Fake charities set up by scam artists to steal your money or personal information are a recurring problem.”

To help avoid a costly mistake, here is a four-step checklist for your charitable giving.

Step 1: Confirm that the Charity is Legitimate. One of the simplest scams perpetuated by fraudsters involves using a name that seems familiar to a nationally known organization. To help taxpayers conduct research on organizations, the IRS has established an online search tool, Exempt Organizations Select Check , which allows users to search for and select an exempt organization and check certain information about its federal tax status and filings.

Remember, there’s a big difference between “tax exempt” and “tax deductible.” Tax-exempt means the organization doesn’t have to pay taxes. Tax deductible means you can deduct your contribution on your federal income tax return. Select Check allows you to find legitimate, qualified charities to which donations may be tax-deductible. Legitimate charities will provide their Employer Identification Numbers (EIN), if requested, which can be used to verify their legitimacy through EO Select Check. The IRS notes that it “is advisable to double check using a charity's EIN.”

Step 2: Research Charity’s Financial Health. Once you have confirmed that the group is legitimate, you can also see what others say about the organization by going to the Better Business Bureau’s (BBB) Wise Giving Alliance, Charity Watch and GuideStar. You will also want to know that its finances are healthy and that it is efficient, ethical and effective. Charity Navigator provides 0 to 4-star rating system, which includes a review of each charity’s fiscal performance. The site also helps you understand what portion of your donation goes to support overhead, versus goes to the cause itself.

Step 3: Determine how you will donate to the charity. You should NEVER send cash donations or wire money to someone claiming to be a charity. And do no not provide any personal or financial information until you’ve thoroughly researched the charity. If you are making a gift of appreciated securities from a taxable investment account, you will need to get information about how to send the assets-be sure to confirm all receiving account numbers.

If you are planning to send a check, your payments must be postmarked by midnight December 31^st -- just writing “December 31st” on the check does not automatically qualify you for a deduction; and pledges aren’t deductible until paid. Donations made with a credit card are deductible as of the date the account is charged, so if you are a little late in the process, you probably should stick to credit cards.

Step 4: Keep Good Records. For any cash or property valued at $250 or more, you must have a receipt (bank record, payroll deduction or written communication) identifying the organization, the date and amount of the contribution and a description of the property. For text message donations, flag the telephone bill with the name of the receiving organization, the date of the contribution, and the amount given.

MARKETS: In a holiday-shortened week, all four US stock indexes closed at new record highs and saw their third consecutive week of gains.

• DJIA: 19,152, up 1.5% on week, up 9.9% YTD
• S&P 500: 2213, up 1.4% on week, up 8.3% YTD
• NASDAQ: 5398, up 1.5% on week, up 7.8% YTD
• Russell 2000: 1347, up 2.4% on week, up 18.6% YTD (15-day winning streak)
• 10-Year Treasury yield: 2.36% (from 2.34% week ago, highest since July 2015)
• British Pound/USD: 1.2477 (from 1.2356 week ago)
• January Crude: $46.06, down 0.6% on week
• February Gold: $1,186.10, down 2.5% on week, 9-month low
• AAA Nat'l avg. for gallon of reg. gas: $2.12 (from $2.15 wk ago, $2.05 a year ago)

THE WEEK AHEAD: The Labor Department will release the final employment report before the Federal Reserve’s December 13-14 policy meeting. Barring a very strange reading (the consensus estimate for job creation in November is 170,000 and the unemployment rate should remain at 4.9 percent) or a sudden, exogenous event, a quart-point rate increase is assumed to be a done deal.

Mon 11/28:

8:30 Chicago Fed National Activity Index

Tues 11/29:

8:30 Q3 GDP-2^nd Estimate

9:00 US/S&P CoreLogic Case-Shiller Indices

10:00 Consumer Confidence Index

Weds 11/30:

OPEC Meeting in Vienna

8:15 ADP Private Payrolls Report

8:30 Personal Income and Spending

9:45 Chicago PMI

10:00 Pending Home Sales

2:00 Fed Beige Book

Thurs 12/1

Motor Vehicle Sales

9:45 PMI Manufacturing Index

10:00 ISM Manufacturing

10:00 Construction Spending

Friday 12/2

8:30 November Jobs Report

Giving Tuesday: Charitable Giving Tips

As the year comes to a close, charities are stepping up their fundraising efforts, starting with Giving Tuesday campaigns. While philanthropy is a wonderful way to promote causes about which you care deeply, there have continued instances of fraud associated with this time of year. The IRS has raised the red flag about charitable scams, especially those that use recent disasters and tragedies to try and steal money or extract private information from well-intentioned people. “Their schemes include contacting people by phone, social media, email or in person and pretending to be from a charity that helps disaster victims.” The increase in fraud means that you need to do a little work, before you give. Start by confirming the group’s name to determine it’s legitimate. Even if it is a genuine non-profit, there could be a case of mistaken identity. There are hundreds of organizations devoted to children or cancer, so go to the group’s website to see how it spends its money. You can also see what others say about the organization by going to the Better Business Bureau’s (BBB) Wise Giving Alliance, Charity Navigator, Charity Watch, and GuideStar.

The Federal Trade Commission recommends that you just say NO to any solicitation if the representative asks for money, but refuses to give you full details about the group’s identity, mission, costs and how it will use your donation; uses high-pressure tactics, like trying to get you to donate immediately, before you can do research or think it over; asks you to send cash or use a money transfer; offers to send a courier or overnight delivery service to collect the donation immediately; promises to enter you in a sweepstakes or give you a prize for donating; won't provide proof that a contribution is tax deductible; uses a name that closely resembles that of a better-known, reputable organization; or thanks you for a pledge you don’t remember making.

To ensure that you are donating to a qualified charity, which is entitled to a tax deduction, you can use the Exempt Organizations Select Check tool at IRS.gov. You can also find legitimate charities at fema.gov. Officials note that you should never provide your Social Security number, credit card and bank account numbers or passwords to anyone who solicits a contribution from you. If you think you’ve been the victim of a charity scam or if a fundraiser has violated Do Not Call rules, file a complaint with the Federal Trade Commission.

Once you have determined that the organization is legitimate, you will want to know that its finances are healthy and that it is efficient, ethical and effective. Charity Navigator provides 0 to 4-star rating system, which includes a review of each charity’s fiscal performance. The site also helps you understand what portion of your donation goes to support overhead, versus goes to the cause itself.

If the donation qualifies and if you itemize your tax deductions, charitable contributions made to qualified organizations may help lower your tax bill. Procrastinators take note: to qualify for write-offs of charitable contributions, your payments must be postmarked by midnight December 31^st -- just writing “December 31st” on the check does not automatically qualify you for a deduction; and pledges aren’t deductible until paid. Donations made with a credit card are deductible as of the date the account is charged.

You should maintain a bank record or written communication from the organization containing its name, the date and amount of the contribution. For text message donations, flag the telephone bill with the name of the receiving organization, the date of the contribution, and the amount given.

All of this may seem like a little more work than you might have hoped, but your time and generosity will pay long-term dividends.

Charitable Scams

During the holiday season, charities step up their year-end appeals to raise money. While it’s wonderful to support these organizations, it’s important to guard against potential scams, especially if you get a request from an unfamiliar group. The first step is to confirm the group’s name to determine it’s legitimate. Even if it is a genuine non-profit, there could be a case of mistaken identity. There are hundreds of organizations devoted to children or cancer, so go to the group’s website to see how it spends its money. You can also see what others say about the organization by going to the Better Business Bureau’s (BBB) Wise Giving Alliance, Charity Navigator, Charity Watch, and GuideStar.

The Federal Trade Commission recommends that you just say NO to any solicitation if the representative asks for money, but refuses to give you full details about the group’s identity, mission, costs and how it will use your donation; uses high-pressure tactics, like trying to get you to donate immediately, before you can do research or think it over; asks you to send cash or use a money transfer; offers to send a courier or overnight delivery service to collect the donation immediately; promises to enter you in a sweepstakes or give you a prize for donating; won't provide proof that a contribution is tax deductible; uses a name that closely resembles that of a better-known, reputable organization; thanks you for a pledge you don’t remember making.

Some scammers focus on specific causes to play on your generosity. Rip-off artists often focus on emotional appeals or disasters in the news. The Federal Trade Commission notes an increase of fraudulent charitable solicitations for Veterans and Military families, as well as call on behalf of Police and Firefighters. In both cases, ask for identification; how your contribution will be used; and if your contribution is tax-deductible. If you are unsure, call the organization to verify a fund-raiser’s claim to be collecting on behalf it.

If you think you’ve been the victim of a charity scam or if a fundraiser has violated Do Not Call rules, file a complaint with the Federal Trade Commission. Your complaints can help detect patterns of wrongdoing and may lead to investigations and prosecutions.

If all seems legit, then it’s time to see whether the organization is efficient, ethical and effective. Charity Navigator provides 0 to 4-star rating system, which includes a review of each charity’s fiscal performance. The site also helps you understand what portion of your donation goes to support overhead, versus goes to the cause itself.

If the donation qualifies and if you itemize your tax deductions, charitable contributions made to qualified organizations may help lower your tax bill. (See IRS Publication 526 for rules on what constitutes a qualified organization.) You have until December 31st to make your donations if you plan to deduct them on your 2014 tax return. Before you get too excited about that deduction, you should know the difference between “tax exempt” and “tax deductible.” Tax-exempt means the organization doesn’t have to pay taxes. Tax deductible means you can deduct your contribution on your federal income tax return. You can check an organization’s tax status at www.irs.gov/app/eos.

To claim the charitable deduction, make sure that you maintain a bank record, payroll deduction record or a written communication from the organization containing the name of the organization, the date of the contribution and amount of the contribution. For text message donations, a telephone bill will meet the record-keeping requirement if it shows the name of the receiving organization, the date of the contribution, and the amount given.

Being charitable is a wonderful, but make sure that you are clear that the organization is real and that its mission is aligned with your personal goals.