Smart Charitable Giving Washington DC New Year ' s 2019
Smart Charitable Giving - 4 Easy Steps -
Many consider donating to causes and organizations a valuable and fulfilling use of their money . Nearly a quarter of Americans made charitable donations in 2015 , according to the Chronicle of Philanthropy .
But how those donations are made varies . Some individuals have methodical gifting plans , while others are more organic in their approach , writing checks when the inspiration strikes and making donations at events . If you ’ re in the latter category , taking a more strategic approach to your gifts can not only increase the impact of your dollars but also ensure you ’ re getting the full tax benefit from your efforts .
Here are four steps for building a gifting plan that serves your charitable interests :
1 . Determine how much you can give . Start by evaluating how much you already give to charity . In addition to any large donations you make , be sure to account for items you purchased at silent auctions or events , tickets for nonprofit fundraising dinners , and small donations made sporadically . Then review your expenses and your overall budget , and compare whether you have more room for making bigger or more gifts . Your charitable giving should come out of your discretionary funds , and not impact any existing obligations such as paying down debt or saving for retirement .
2 . Make your gifting methodical and easy . Perhaps you ’ ve already been gifting sums here and there . However , understanding how much you ’ re able to gift in total and then planning for those gifts can increase their impact . For example , consider lumping your sporadic donations into one larger , more impactful gift to one of your favorite organizations . Alternately , set up a recurring monthly donation through your bank . You ’ ll spread out your donations , but ensure the end result reflects the amount of annual support you ’ d like to provide to a specific cause or organization . The added benefit of making your gifting more planned and methodical : It will feel intentional , and possibly , more rewarding .
3 . Find ways to elevate your impact . If you do have a charitable intent , investigate ways for making your gifts go as far as possible . For instance , many employers have workplace giving programs , which match the donations you make to your favorite organizations . In fact , 65 % of Fortune 500 companies offer some sort matching gift program . Consider gifting donations in honor of your friends and family . Instead of spending the usual $ 25 or $ 50 for a present , make a donation to a cause that ’ s meaningful to the recipient and yourself . Also , consider gifting assets that aren ’ t cash . For instance , you can donate a vehicle to a nonprofit . You can also gift securities . The latter comes with a few tax benefits : you avoid paying capital gains if the stock has appreciated since you bought it , and you can deduct the current fair market value of the securities .
4 . Keep taxes in mind . While the intention of your gifts is to help the organizations and causes that you love , tax deductions provide another positive to making donations . There are some recent changes , however , that impact donors . Under the new tax law , you need to itemize your deductions in order to claim charitable gifts deductions . If you plan to do so , keep good records of any gifts you make . The IRS will want a bank record or written statement from the charity , regardless of the amount of the gift . Also , you can only deduct gifts given to qualified charities . This IRS tool can help you check whether an organization qualifies . Finally , if you anticipate ramping up your gifting , you might consider opening a donor-advised fund . This way , you can give to the fund annually — and take the related deduction in the same year — but gift the money at any time .
By gifting to charities , you ’ re already making a difference . Follow these steps to organize your gifting , elevate your impact and make use of related tax deductions and your gifting will go that much further .
Program Success 5 New Year ’ s 2019