During the holiday season, many people are inspired to give to charities. Although the government offers tax incentives for charitable giving, most people's generosity stems from the goodness in their hearts.

"Most donations come from a passion within and the knowledge that they are doing good work," says Heidi Jark, manager of The Foundation Office at Fifth Third Bank. She says most Americans make charitable gifts of some sort, although many do not itemize them on their income tax forms.

"All gifts - large and small - are greatly appreciated by charitable organizations and the people they serve," she continues. "We also find that many charitable organizations appreciate volunteers - people who can donate their time and provide hands-on help."

Are you ready to give?
When people are interested in making charitable donations, Jark encourages them to look for a cause that is important to them. "We often help people research organizations and decide which ones meet their personal objectives."

When selecting charities, The Foundation Office can also help potential donors make sure the organization is in good standing with the IRS and make sure it is reputable by reviewing Web sites, databases and checking with the Better Business Bureau. She adds that it may be more difficult to locate information on smaller organizations.

In some cases, Jark encourages people to volunteer with an organization to get a more complete understanding of its mission and how it uses financial donations. "Charities often need people to staff special events, serve on committees or do office and administrative work. I encourage people to contact organizations and ask how their skills can help," she says.

How much should you give?
When considering a financial donation, Jark encourages people to talk with their financial professionals or tax advisors to come up with an amount that makes sense for them. She also encourages people to ask organizations if they have any causes that need special funding. If not, donors may simply contribute to an organization's annual fund, which helps pay utilities and rent.

For some older adults, making charitable donations may be a way to reduce estate taxes. "When people leave any portion of a retirement plan to a charity, that charity gets the full value of the gift; they don't have to pay taxes on it," Jark explains. She says life insurance policies can also be included as a charitable gift. To learn more, she encourages people to speak with their insurance agent or a financial professional.

At Fifth Third, The Foundation Office assists with charitable giving in several ways: It oversees the Fifth Third Foundation and its grant-making in a 14-state region. It serves as a trustee on some of the trusts on which Fifth Third has been named the sole decision-maker. It also serves as the back office administrator for a number of family trusts throughout the country.

For more information on charitable giving, contact Fifth Third at (866) 475-4201 or visit 53.com.

To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Fifth Third does not provide legal or tax advice. Please consult your legal or tax advisor before making any decisions or taking any action based on this information.