Charitable giving offers chances for financial planning as well as ways to positively impact other people’s lives.
Whether you’re an individual or a business, there are several charity-giving options available to help you increase your influence.
In this article, we’ll go through various charitable giving strategies for wealth management.
What is Charitable Giving?
Charitable giving involves making a financial, time, or material donation. This can be done by individuals, corporations, or foundations.
Giving to charities also offers tax advantages, financial planning opportunities, and a means to support causes that are important to you.
Charitable giving has a lot of advantages–you can get a sense of fulfillment and purpose from it, and it can also enable you to have a constructive influence on the world. It can also provide tax benefits, such as deductions on income taxes, estate taxes, and capital gains taxes.
Types of Charitable Giving
Here are some of the most common types of charitable giving:
Cash Donations
Cash donations are the most common type of charitable giving. This involves donating money directly to a charitable organization or cause. Cash donations can be made in the form of a check, credit card, or online payment.
Securities Donations
Securities donations include donating stocks, bonds, or other securities to a charitable organization. This can provide significant tax benefits, as well as help you diversify your portfolio.
In-Kind Donations
In-kind donations involve donating goods or services to a charitable organization. This can include items such as clothing, food, or medical supplies.
Planned Giving
Planned giving involves leaving a gift to a charitable organization in your estate planning. This can include bequests, charitable gift annuities, and charitable trusts.
Charitable Giving Strategies for Wealth Management
- Build your legacy with planned giving
Planned giving is a way to leave a lasting legacy for causes that you care about. Here are some types of planned giving:
Bequests
A bequest is a gift that is made through your will or trust. This can include a specific dollar amount, a percentage of your estate, or a specific asset.
Charitable Gift Annuities
A charitable gift annuity is a way to make a gift to a charitable organization while also receiving fixed payments for life. This can be a great way to support a cause that you care about, while also ensuring that you have a steady source of income in retirement.
Charitable Trusts
Charitable trusts are a way to make a gift to a charitable organization while also receiving tax benefits and financial planning opportunities. There are many different types of charitable trusts, including charitable remainder trusts and charitable lead trusts.
- Consider donations that are tax-deductible
As mentioned in this article, one of the benefits of charitable giving is the tax benefits that it provides. Here are some tips you should consider to receive the benefits:
Donate to a Qualified Charity
In order to receive tax benefits for your charitable donations, you must donate to a qualified charity. This includes organizations that are recognized by the IRS as tax-exempt.
Keep Records of Your Donations
Remember to keep records of your donations. This can include receipts, canceled checks, or bank statements.
Take Advantage of Tax Credits
Aside from tax deductions, there are also tax credits available for charitable donations. This can include credits for donations to certain types of organizations or for certain types of projects.
- Donate non-cash assets
There are many other types of assets that you can donate to a charitable organization apart from cash. Here are some examples of non-cash assets:
Real Estate
Donating real estate to a charitable organization can provide significant tax benefits, as well as help you diversify your portfolio.
Vehicles
Not only can donating a vehicle to a charitable organization provide tax benefits, but it can also help the organization in their work.
Artwork
Help support the arts by donating artwork to a charitable organization. Doing so can also provide tax benefits.
- Talk to our financial advisors!
Our team at Robert Emmer with Silversage can help you develop a plan that fits your goals and your budget, while also providing tax benefits and financial planning opportunities.
If you are interested in charitable giving strategies for wealth management, talk to our financial advisors today!
DISCLAIMER:
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. For version 8.1 only, please add: The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The NASDAQ-100 (^NDX) is a stock market index made up of 103 equity securities issued by 100 of the largest non-financial companies listed on the NASDAQ. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor’s results will vary. Past performance does not guarantee future results.