It’s the Season of Giving, and chances are your mailbox has piled up with requests from various charity organizations for a donation. Arts, community, education, animals, global needs…there are endless possibilities when it comes to choosing a cause to support.
The end of the year is an expensive time, but it’s also a time to invest in yourself and when it comes to charitable donations—both sides win. You support a cause that’s important to you while also making a smart investment.
When you make donations to charity, you’re impacting the overall status of your wealth. One of the advisors at Saddock Advisory can help you assess your options and determine which giving opportunities are best, plan income for charitable giving, and examine which may relieve your tax burdens.
Your Charitable Donation Options
If you thought you had a lot of options when it came to choosing a charity, just wait until you see all of the different types of charitable giving.
- Endowments and foundations: An endowment will allow you to earn money for the charity and a foundation will give you greater access to a personal cause.
- Donor-advised funds: Make a contribution to a public charity that manages donations on your behalf.
- Charitable gift annuities: You transfer assets to a charity in exchange for tax benefits and lifetime income.
- Pooled income funds: Donate securities and cash to help maintain a pooled income fund established by a public charity.
- Charitable remainder trusts: Provide an annual distribution to a noncharitable beneficiary, with the remainder interest going to at least one charitable beneficiary.
- Charitable lead trusts: Donate a piece of a trust to charity to reduce taxable income. Then, after a specified period, the remainder of the trust goes to other, noncharitable beneficiaries.
When Is the Right Time?
When considering tax savings, there’s not exactly a best time of year to make charitable donations, but it should come as a surprise to nobody that the desire to give back hits hardest around the holidays.
The holiday season coinciding with the end of the year makes things easier for those looking to relieve their tax burden. To make the most out of your giving, you’ll need a charitable giving plan.
Things to Consider for A Charitable Giving Plan
In order to maximize the benefit of your donation, for both the charity you choose and yourself, you’ll want a trusted advisor. Giving a donation is so much more than just writing a check. In the end you want to ensure your charity or charities get the most out of your contribution.
To make this happen you’ll want to follow a few guidelines, such as:
- Narrow down your options to 1-3 charities.
- Choose nonprofits that align with your goals.
- Define your end-game.
These key guidelines partnered with the guidance of a trusted advisor will allow you to make a huge impact. To learn more about giving wisely and how to make the best charitable giving plan, let’s talk.
At Saddock Advisory, we’ll advise you on the best giving strategy for you and your family. Get in touch with us today!