Charitable donation tips

DELMARVA – While many dedicate the month of December to all things Christmas, it’s also National Giving Month, a time to celebrate people making a difference in society.

According to Giving USA, last year, charitable giving reached $484.85 billion. However, to keep the upward trend of donating financial planners also advise consumers of tax-smart strategies and benefits, whether with your time or of course your money.

For retirees, some strategies include giving to charities directly from your IRA through qualified charitable distributions, which become taxable, but you do have the option to not make them taxable to you. For individuals who own stocks, you can use that as a donation strategy, where you won’t have to pay a capital gains tax. You could get a charitable deduction as well.

When it comes to tax benefits, Brent Fuchs, a Financial Planner Professional & Partner at Heritage Financial Consultants headquartered in Hunt Valley, Md., with his home office in Preston, Md., is also an Investment Advisor Representative of Lincoln Financial Advisors, Member SIPC tells 47 ABC, “The main benefit you get is if you are itemizing deductions so again if you go over individual 13,000, that’s not just giving 13,000 dollars because that’s a lot to give, but you get taxes, your state tax, your property tax help make up your itemized deductions.” Fuchs adds, “If you give to a donor-advised fund, maybe it’s $50,000 maybe it’s 100,000, you give it to this donor-advised fund and then you and your family going forward control how you give that on each year basis.”

Beyond tax benefits, there are multiple social benefits like just volunteering your time to your favorite charity. Many charities depend on donations to continue the work they do. Outside of charities, giving to younger family members is highlighted in December as well. “You can give that without having to file a tax form and you get to see whether it’s the benefit of helping your family go to college or purchase their first house.” He adds, “Tax benefits are great but you’re helping people that are in need, and sit makes you feel good.”

Fuchs also reminds people to give to charities that align with their passions and values in life. One should also always consult with their financial adviser when planning to give large sums of money to charities or to create the best strategy.

CRN-5357147-121622