Charitable Giving Tips & FAQs Answered

Over the past two months we have explored how charitable giving can fit into your financial plan. With this final installment of our Charitable Giving Campaign, we highlight key takeaways from these blog posts to provide you with a guide for your generosity. If you would like to continue the discussion, please visit our website and make an appointment with one of our financial professionals today.

FAQs:

1.       Why should I consider giving?

Making you’re your annual gifts might seem like just another box to check before the end of the year. But as we have noted, giving not only provides a sense of well-being but charitable donations can also result in significant tax benefits.

2.     How do I know my money is going to a trustworthy organization?

Meeting with your financial advisor, allows you to rest assured that your donations are going to credible organizations. To verify that a prospective recipient qualifies for tax benefits, you can use this IRS search tool.

3.      What are the different ways to give?

Contributing through a qualified charitable distribution, a donor advised fund, or through appreciated stock or assets are ways to give. Our previous resource post, “Generosity Strategy: Ways to Give”, provides the basics to get you started.

4.     How much should I donate?

Creating the framework for a generosity strategy with your financial advisor will help determine how much you should donate. Your advisor can help navigate your financial situation and address your unique priorities when it comes to making donations.

Tips:

1.       Do your research before you donate

Our previous article, “How to Choose Organizations to Support”, details measures to identify organizations that are the best “fit” for your gifts. It is important to understand an organization’s mission and what they do with donations it receives.

2.      Maximize tax benefits

One upside of making charitable donations is the potential for tax benefits. In the article mentioned above, we describe how the IRS rules determine donations to be tax-deductible or tax-exempt. Donating to these qualified charities, religious organizations, or educational institutions can result in tax benefits.

3.      Create a generosity strategy

To develop an effective generosity strategy, connect with your financial professional. Your advisor will help you create a strategy that ensures your donations align with your values, and that your money is going to trustworthy and effective organizations.

As we have outlined in this article, and in previous ones, there are many benefits to including charitable giving in your financial plan. If you have any questions or would like to discuss how charitable giving fits into your unique plan, please contact one of our financial professionals today.

The material has been gathered from sources believed to be reliable, however West Michigan Advisors cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. To determine which investments or planning strategies may be appropriate for you, consult your financial advisor or other industry professional prior to investing or implementing a planning strategy. This article is not intended to provide investment, tax or legal advice, and nothing contained in these materials should be taken as such. Investment Advisory services are offered through West Michigan Advisors. Advisory services are only offered where West Michigan Advisors and its representatives are properly licensed or exempt from licensure. No advice may be rendered unless a client agreement is in place.