When it comes to giving charity, there are a lot of ways to do it from donating cars like in the Kidney Foundation Pick Up to donating your blood in the Red Cross. The possibilities are endless. You just need to make the right decision and choose which type of charity or organization you should want to donate to.
One of the things that you may keep in mind if you want to be smart about it is to look at it from a financial perspective. Charitable giving can actually be an essential part of your tax, estate, and financial planning. This is based on the fact that almost 26% of taxpayers in the U.S. itemize charitable deductions on their tax return.
These are also some of the types of giving that you should keep in mind:
Donating Cash, the Simplest Way
This is the most simple form of charity that you can give. For your tax deduction, it would be equal to the amount of cash you donated. The goods or services’ value that you received in return will also be deducted. One of the best examples of this is becoming a member of a non-profit organization. With this type, there won’t even be any confusion, and you can donate any amount that you want. The process is plain and simple, but very effective.
Never thought that stocks could be a form of donation? Well, they are.
This is considered as one of the most tax-efficient ways to donate. By selling your stocks, you will even have no capital gains taxes. Furthermore, the more appreciation that your stocks will have, the larger your tax saving will be! Another benefit of this type of charity is that the stocks that you purchased a year ago will grow and have a bigger value than they were before. These can be donated, and you will be eligible for tax deductions that are equal to your stock’s market value.
Donor-Advised Funds, A Sought After Type of Charity
For donations that cannot be refunded in cash or securities, this is the type of charity you are looking for. In this country, it makes up more than 3% of all charitable gifts. The benefit of this type of charity is that you will feel very close to your cause. You might also want to be involved with how the funds are used. Moreover, you can immediately receive the maximum tax benefit from the IRS.
Real Estate Because Why Not
If you are not using a certain property and the tax is too large of an amount to sell it, the best solution is to donate it. And even if you are still living in it, you can set it up as a charitable contribution. So, after your death, the deed will be transferred. Tax benefits are also one of the reasons why many choose this because, in certain cases, you may be eligible for tax deductions equal to the property’s market value.
The Best Way: Look for Credible and Simple Donations
Talking about tax deductions and benefits can be tiring but essential for some. If you want to donate to a cause simply and without worries, you can try out health charities like the Kidney Foundation Pick Up. They help patients who suffer from kidney disease obtain the necessary treatment and procedures by raising money to finance the expenses. The process of donating is easy, and it will surely be worth every penny or property, for that matter.
Thus, those are just some of the few ways you can do to help others while also gaining a few benefits. With so many types of charities in the world, you can take your pick, and regardless of how little you donate, it will make its impact. For instance, there have been a lot of worries when it comes to global warming. You can support an environmental charity that focuses on this issue. The gist here is that all of these charities are out there. The only thing that you have to do is to support them as much as you can because it can mean the world to many people.