Ring Out 1997 by Giving

Tax forms are already in the mail, but it is not too late to create a charitable deduction that will ease next year’s tax bill and help a worthwhile cause.

Charitable donations nationally rose 8% after inflation last year, but that increase did not keep pace with the much larger increase in the nation’s wealth, which was driven by a bullish stock market, low inflation, low interest rates and low unemployment rates. The rosy economic news--and the threat of huge tax obligations--should persuade individuals and corporations to give more.

Southern California has a bad reputation when it comes to charity, but a new study finds Los Angeles County residents actually giving at a rate just above the rest of the nation. The Field Research Corp. study, released Monday, found that 74% of those interviewed reported making a contribution in the past year. The most popular charitable organizations help the disabled and needy. The arts, hospitals, cultural centers and religious institutions are also popular causes.

Education is a top priority for individual donors. Universities and colleges collect most of the donations in this category. The California Community Foundation is leading a drive to raise $1 million to relieve the textbook shortage in the Los Angeles Unified School District, and most other schools and public libraries could use new books or the funds to buy them. Schools also need computers, but not incompatible machines or castoffs too old to be useful. Donors should call a school or organization first to see what equipment would be useful.

Donors who want nine cents out of every donated dime to be spent on helping others should check Money magazine’s annual ranking of the most efficient charities, those that spend the least on administrative costs. The American Red Cross, Catholic Charities USA and the Salvation Army took top honors. The National Charities Information Bureau has a similar list.

Money, still-useful furniture and clothing, expenses incurred while volunteering--all can make a difference to the giver’s pocket at tax time and to the recipients all the time.