THINKING ABOUT GIVING? START HERE:
Consider what kind of charity you are most interested in donating money to and then do your research. You want to make sure that your charity is a tax-exempt 501c3. Also, give your money to financially responsible charities. These charities will focus your cash on their cause, not their internal fundraising and administration fees. A 35%/65% administration to charity ratio (or better!) is usually an acceptable guideline.
Then, consider what “tax year” you want your charitable donation to count towards. You will want to make the dona- tion and receive a receipt within the appropriate calendar year. You can donate via your credit card, (a great way to earn miles!)
Check with your employer since some employers will match donations. It’s nice to double your contribution and make a greater impact.
You can give cash, but also consider giving securities. You can receive a tax deduction on the full market value of a donation -- real estate or stocks. And income tax will be waived all together if the asset is sold by the charity. Certain rules apply based on the asset. Please review your ideas with your tax professional.
Finally, you can consider a Donor Advised Fund. That is a fund that has been developed to collect donations and allo- cate them to a list of charities that work under their umbrella. You can gift cash or securities and the Fund will allocate your donations accordingly.
As we head into the season of giving, you will have fun knowing how much you helped both the charity AND your own bottom line, too!
Annette Findling, CFP® Founder of Stonebridge Wealth Advisors, LLC. Be sure to visit RichWomenRock.com for more great articles and insights from Annette Findling.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual, nor intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through HighPoint Advisor Group, a registered investment advisor. HighPoint Advisor Group and Stonebridge Wealth Advisors are separate entities from LPL Financial.