Do you want to learn a way to make a good return on your investments? The answer may surprise you. Give away some of your assets as part of your financial plan.
The purpose of philanthropy is to serve the public and fund initiatives that are not covered by either the public or the private sector. This helps build thriving economies and societies, especially when you consider the “community’s” needs over the last few years. It is important to understand your options so that your charitable giving will have the most impact and return on investment.
Tax-deductible gifts are dependent on the charitable organization. Make sure you give to an IRS designated 501(c3) organization. They are divided into three categories: public charities (non-profits), private foundations and private operating foundations. Your donation must be itemized in your tax return to qualify for a charitable deduction. Your tax deduction may vary depending on the type of charity you donate to and the type of asset that you donate. Your total deductions per year could be limited to a percentage of your gross income. If you donate more than the limit, some deductions may be carried over to the following year.
In the post-COVID world, people are more inclined to donate to charities. Look for programs that will reward you when you give. Amazon Smile, for example, will make a small donation to the charity of your choosing when you buy items online. You may be eligible for a match program from your employer. Some credit cards offer cashback or rewards for charitable contributions. Even if you do not have much extra money, you can still support charities through the things you already do.
Speak with your oXYGen Financial Private Chief Financial Officer about incorporating strategic gifts into your retirement, estate or financial planning. These can be in the form a bequest or a gift of cash, appreciated assets, real estate, or a distribution from your IRA. If planned gifts are done properly, they can have a greater impact, leave a legacy and provide substantial tax benefits for the donor.
You should be aware of the importance of charitable giving, no matter how big or small your gift may be. It is not just for the good of your community and your society, but also to fulfill your own personal and financial goals. Speak to your Private CFO about your charitable goals.
