Charitable Giving is back on the rise after a two year decline according to Giving USA; charitable giving was up over 2 percent in 2010. While giving is values based it is also a smart move financially (as long as you stay within your means). But how do you make the most of your donations. A little planning can make a small amount go further – and make you feel better about the money you can give.
Follow these six simple steps to guide you through the process.
1. Start with your interests. To help focus your giving, begin with your own interests and experiences. Be clear on why you want to support them.
2. Look to your community first, every community has programs and projects that need financial help.
3. Not all gifts are financial, you can give your time to which for some charities is more valuable than money.
4. Do your research: is the charity effective, do they fulfill their mission. Check out sites like charitywatch.org and give.org – there you can find tips and research on how to evaluate charities.
5. Give yourself a break – tax break that is!
The IRS allows you to deduct up to 50 percent of your adjusted gross income for most donations
to qualifying public charities
If you plan to deduct charitable contributions, you’ll need to itemize deductions on your tax return
Receipts are needed on donations of $250 or more to a single charity – also you’ll need a receipt
or bank record for cash donations
If you have appreciated securities, consider donating that instead of cash. If you donate appreciated
securities to a charity you pay no gains tax, plus the charity gets the full value of the stock and you get
to deduct the full value of the gift – truly a win win!
6. Fulfill your mission – and take pride in knowing your generosity is promoting the greater good.
CBlakely CFP, CTFA 1/2012
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