Want to know a secret way to get a solid return on your
investment? You might find the answer shocking. As part of your financial planning,
give away some of your assets.
Philanthropy and charitable giving is serving public and
support initiatives that may not be covered by the public or private sector which
helps create thriving societies and economies, especially considering the needs
of "community" over the past few years. Charitable giving can be both
personally and financially rewarding, which is why it's important to know what
your options are so your giving has the biggest impact, and your investment the
greatest return.
The tax-deductibility of gifts is dependent on the type of
charitable organization so make sure yours is going to a qualified charity, one
designated as 501(c)(3) organization per the IRS. These organizations typically
fall into three main categories: public charities, private foundations, and
private operating foundations. To deduct your charitable contribution, your
donation must be itemized on your tax return. The tax benefit you receive for
your deduction will vary depending on what type of organization you're donating
to and what type of asset you're donating. The total deductions you claim per
year may be capped at a certain percentage of your AGI. However, if you find
that you've donated more than that limit, you may be able to roll over some of
your deductions to the next year as well.
Post-COVID needs have created a world that is focused on
giving now more than ever so look for programs that reward those who want to
give to charitable organizations. If you shop online, programs like Amazon
Smile make small contributions to a charity of your choice for items you
purchase. Your employer may have a matching program for donations to charitable
organizations. Certain credit cards even give you rewards points or cash back
for charitable donations. The point is, even if you don't have a lot of extra
money to give, you may still be able to support charities by doing things
you're already doing.
For the most strategic giving speak with your oXYGen
Financial Private CFO about incorporating into your financial, retirement or
estate planning gifts in the form of a bequest, life insurance, cash,
appreciated investments, property, or annually using a Qualified Charitable
Distribution from your IRA. Planned gifts can be powerful because if done
correctly they have the opportunity to give a gift that has a larger impact,
leaves a legacy, and provides substantial tax benefits to the giver.
Whether your gift is big or small, charitable giving is
something you should learn about not only for the benefit of your community and
society but also for your personal and financial fulfillment. Let us help you
help others, speak with your Private CFO regarding your charitable goals.
If you would like to receive more information on making smart money moves for your future, be sure to contact us today!
