Americans always answer the call to charity in times of disaster and the earthquake in Haiti was no exception. The American Red Cross is reporting that more than $9 million alone has been pledged by U.S. cell phone texters.
But in recent days, some interesting little news nuggets have surfaced about pledging a donation to charity through your cell phone.
1) The operative word is “pledged.” If you texted HAITI to 90999, you authorized your cell phone carrier to make a $10 donation to the Red Cross AFTER you paid your cell phone bill which will include that $10 in addition to your regular bill. (You would be surprised how many people did not know (or will claim that they did not know) that they would be expected to pay that additional $10.) Bottom line is that if you don’t pay your bill, no donation.
2) Because of billing cycles, much of the money pledged this way won’t get to Haiti until late March or April. This is probably a good thing, because it’s about the time that the money will be needed the most to rebuild the country’s infrastructure.
3) There is a real possibility that texters will not be able to claim a tax deduction for their donation because the cell phone carrier, not the individual, will be the one actually making the donation. The carriers WILL be able to claim a tax credit for their contribution.
So, what does all this mean? If you want to be able to claim a credit for tax purposes and want your money to be put to use right away, you should probably go directly to the webpage of your charity of choice and make a donation there by check or credit card. You will be able to print out a receipt which will state that your contribution is tax deductible.
If you don’t mind the delay with your contribution (and you shouldn’t) make sure you pay your cell phone on time when it includes the text donation you made.
Do it anyway you want, but make sure you donate. Your help is still needed.