Giving Tuesday is quickly approaching. Giving Tuesday is a global donation event day that encourages people to do good in their community.
We encourage our clients to support local and global charities during this time of year. We also want the most for your donations. Here are a few tips to maximize your donations this year on December 1, 2020.
- Picking a Charity. Know the organization that you are donating to. Do some background research to ensure that the organization of your choice lines up with your core principal beliefs and values.
- Employee Matching. A lot of companies have charitable matching programs. Check with your HR department to see if yours does. Turn your $50 donation into $100!
- Some Charities are Not Tax-Deductible. Just because it is a charity does not mean it is tax-deductible. For a tax-deductible, a charity must be considered not-for-profit. This means that political donations, gifts to individuals, and gifts to for-profit schools, are not considered tax-deductible. Verify with your charity their tax-deductible status.
- Donate your required minimum distribution. Tax-deferred retirement accounts require a minimum distribution once you reach a certain age. By directly transferring your RMD to an IRS-qualified charity, you can avoid paying taxes on this RMD. (The RMD MUST be directly donated to qualify as non-taxable.) Click here to determine age requirements for RMD.
- Set up automatic payments. Many organizations have a recurring donation option available when donating online. You can opt-out at any time but setting up a recurring donation allows you to help throughout the year without even having to think about it! It is also a way to spread out your donations instead of giving one big lump sum.
- More Ways to Give. Not all giving needs to come in the form of cash or online donations. Check out your local charities and see if they need volunteers. Most charities share a list of items that can be donated. Check it out and see if that appeals to you. Share your intent to give with your friends and family. Chances are they align with many of the same beliefs as you and they may wish to get involved as well.
Remember to mark your calendars for this year’s Giving Tuesday being held on December 1, 2020 and make the most of your giving!
This is meant for educational purposes only. It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions.
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