How to Make a Donation in Someone’s Name

Is a friend’s birthday coming up and you’re not sure what to get them, or has a loved one recently passed away and you want to do something to honor their memory? Consider making a donation in their name! When you donate in someone’s name, you give money to a charitable organization or cause with that person in mind. If you are interested in this unique way of honoring the people in your life, this guide covers how to make a donation on behalf of someone else.

1. Understand why people make donations

The first step to making a donation in someone else’s name is understanding why people make donations and what your donation would mean to the person in question. There are several reasons why people donate money, including:

• Religion: Many faiths promote charitable giving to assist others and make a positive difference in the world. In some cases, donating money is a requirement. Religious individuals may also send money to their churches or missionaries to support their objectives.
• Lived experiences: People often donate to organizations that have helped them in the past or to fundraisers that aim to fight a disease they had, like cancer. They may also give money to these charities because of the experiences of people they know.
• Belief in a cause: Individuals often provide financial support to causes they feel strongly about, like stopping world hunger or helping struggling animal shelters.
• Values: Many donors give money because they have a strong sense of ethics and morality and wish to help others.

Whether you make charitable donations on behalf of someone living or to honor the memory of someone who has passed, knowing why others make donations can help you pick a worthy cause that your honoree would approve of.

Consider the person’s interests

When making a donation in someone else’s name, the key is finding a cause they care about. People often post charities on their social media accounts that they want people to donate to instead of giving them birthday presents. Or, if you’re making a donation in the name of someone who has died, the family may provide a list of charities to give money to instead of buying funeral flowers.

However, there may be cases where you have to select a charity that you think the person might support. For instance, you may want to donate to a charity in addition to sending flowers to the deceased’s family members, or you may decide on a whim to give money in honor of someone living. 

In any case, it’s important to remember that you are donating to honor someone else — not yourself. Consider their personal beliefs and what they support to find the best charity or cause to donate to in their name.

2. Do the research and choose a charity

Once you have a cause in mind, do your own research when selecting your charity. You want to make sure you’re choosing a reputable organization and that the money you donate will be used effectively.

Some steps you should take to confirm a charity is legitimate include:

• Evaluate the website: Most real charities will have websites filled with information about their cause, where donated money is going, and reviews from past individuals who have supported the organization. In many cases, they will also have stories and quotes from individuals they assisted. You should check the web address of the page where you enter payment information, as well. Only trust pages that start with “HTTPS.”
• Check if the donation is tax-deductible: If you confirm that donating to a charity is tax-deductible, you can almost always trust that it’s a legitimate site. One way to see if your donation is tax-deductible is to check the IRS’s list of tax-exempt organizations.
• Pay with card or check: Many scam artists ask for gift cards or wire transfers as payment because they’re harder to track. You should also be wary of sites that say you can only donate with cryptocurrency. Actual charities will usually ask you to pay with your credit card or a check, so it’s suspicious if the charity can’t receive these payment methods.

While your friend or the deceased individual’s family members may request donations to a specific charity, it still helps to look into the organization to confirm that it’s legitimate. If it’s a crowdfunding site, which is an unregulated way of giving money, or a suspicious site, you can always research to find a trustworthy charity with a similar goal that you can support, instead.

3. Make your donation

Now that you’ve found the perfect charity, it’s time to donate! When you go to send money, many organizations will provide you with the option to make the donation under someone else’s name. There may even be a separate donation portal dedicated to making a donation in honor of someone else. If you need help finding a way to gift a donation in someone else’s name or the instructions are unclear, you should contact the charity.

Once you figure out where to make the donation, sending the money is easy. You can usually complete the donation online with a credit or debit card. Remember to insert the name of the person you’re donating on behalf of in the appropriate section. There may also be an area where you can put their or their family’s contact information so that they can receive updates on the donation.

After sending the money, ensure you record it and receive a confirmation or receipt. This step is important because your donation may be tax-deductible.

4. Notify the person or their family

Once you have made the donation, you should notify the person or their family, if you have made a donation in the name of the deceased. That way, they know they inspired you to make a difference in their name.

Most charities will send a thank-you letter or email after you donate toward their cause. You can hold onto this letter or print it out to give to the person with a personalized message. Another great way to let someone know you made a donation in their name is by delivering the letter with a card.

By notifying the family or person, you can help make their day special because they know they or their loved one are making a difference in the world.

Who gets the tax deduction?

If you make a donation in someone else’s name, you can deduct it from your taxes. While you are donating in their name, you are the one providing the money. As a result, you can deduct your contributions to the charity from your taxes.

Ensuring you have proof of making the donation is vital to prepare for potential IRS audits. For contributions over $250, you’ll need a written statement that you donated the money from the charity. Also, the organization needs to be eligible for tax-deductible donations.

Make donations easy with GiveSmart

Does your organization want to help individuals donate in someone’s name? If so, you can provide a way to support a cause they believe in with GiveSmart event fundraising technology. This solution enables you to offer a secure way for individuals to donate to your cause on behalf of someone else. If you want to learn more, request a demo today to see how we can help you achieve this goal!