Some vacation homeowners approach their slow season with an attitude of generosity. If you have some openings in your calendar that are unlikely to be filled, you might consider donating a stay at your vacation rental to a charity.* The charity will then use your donation as a gift for someone in need or perhaps as part of an auction to make money for their cause. However, before you give in to your generous side, there may be some downsides that you have not considered.

Here is what you should know about a charitable contribution of this kind:

Benefits:

When you donate a stay at your vacation property as a charitable gift, you'll obviously get a case of the warm and fuzzies. But the benefits could go beyond those pat-yourself-on-the-back-feelings.

• First, you are getting renters in your home when it might otherwise sit empty.
• If those renters enjoy their stay, they might turn into repeat renters or perhaps refer your home to others.
• Plus, if your donation is going to be part of a charity auction, you have the opportunity to promote your vacation property to all attendees. Despite the fact that you are giving away a free stay, this increased exposure can lead to bookings down the road.
• Lastly, you could offer the winning bidder the chance to extend their stay and pay the difference for the extra time, which will open the door for a little bit of extra cash.

You can still enforce your rental restrictions just as you would with any other booking. You should specify the number of nights you are donating, blackout dates, the date by which the renters have to book, and the date at which the offer will expire. You should also still require a security deposit or cleaning fee to make sure your home is taken care of as with any typical renter. Fortunately, the specifications of the donation are really left up to you.

Drawbacks:

Unfortunately, though, making a donation of this kind is not all sunshine and daffodils.

• In general, donating a stay at your vacation rental cannot be used for a tax deduction or write-off. For more information on donations involving property, see the IRS publication on Charitable Contributions and talk with your accountant.
• Another tax consideration is that the donated time might count as personal use by the owner. If you file your vacation home as an income property, you cannot personally use it for more than 14 days. Therefore, this charitable contribution could put you over the number of allowed days for personal use. Before you make a donation, be sure to count your number of personal days and talk to your accountant to prevent any negative tax implications.
• Also remember that donating a stay as a charitable contribution will likely require the same amount of time and work as a normal booking, but in this case you're not making any money. You have to consider whether you're willing to make the effort without any monetary reward.
• You are also basically giving up the right to screen your guests because the stay will go to someone designated by the charity or to the highest bidder, which poses a bit of a risk to the vacation home owner. These issues are some of the strongest when it comes to renting a vacation home, so many owners may not be willing to hand over their time and their control.

When evaluating the decision to donate a stay at your vacation property, it is important to consider the pros and the cons. You don't want to be the person that asks for their donation back!

*When selecting a charity, especially one that is not well known, you might want to double-check their legitimacy before making a donation. Most states require their charities to be registered. You can also have a look at their financial statements (all registered charities are required to make their financial statements public) or contact the charity to request a copy of their most recent annual report to assess how much they are spending on overhead as opposed to the actual cause. According to MarketWatch.com, "A general rule is that at least 60 percent of a charitable group's dollars should go to fulfill its mission, or program, while 40 percent or less should go to administrative costs, but that number can vary widely based on overhead associated with the type of work being done." Your local Better Business Bureau might also have information on reviews or complaints.

Websites to vet charities: CharityWatch, GuideStar