Many of us try to reap the benefits of charitable donations as we head into the year-end. Charitable donations are on the rise with more and more Americans giving to charity. While you probably do not donate to charity just for the potential tax deduction, it can be a bonus. You should always try to donate in a tax-efficient way.
Here are a few helpful hints regarding charitable gifts:
Make a plan: Make a consistent program so you can maximize your dollars. Once your retirement funds are allocated and bills paid, hopefully you can find a way to give back to one of the millions of organizations and institutions in need of help.
Identify the source: Only donate to organizations with tax-exempt 501(c)(3) status. These are the only deductions that are deductible on your tax return. Before you donate to a charity check to verify its 501(c)(3) status. You can research tax-exempt organizations on the National Center for Charitable Statistics website.
Whether you currently donate to your college or university or your favorite cancer research organization, now is a great time to consider charitable giving as part of your annual financial plan. There are so many worthwhile causes in need of help, time, money and support. If you are looking to make an impact (financial or personal) and need some guidance, I can help point you in the right direction.
If you are interested in learning more about getting your financial house in order and/or charitable giving please let me know so I can refer you to a local expert.
Happy tax planning!!!