Are you looking to support an organization that helps people in need? Some may choose to volunteer their time and abilities while others may provide financial support. Charitable giving provides an opportunity to engage both your head and your heart in making a difference. The following tips from Thrivent Financial can help donors get the most from their charitable giving:
â¢ Choose a reputable organization. Never donate to an organization without first knowing its purpose and effectiveness. The BBB Wise Giving Alliance can help you assess your options.
â¢ Budget for donations. Systematic giving distributed throughout the year can help donors give more than if they offered a one-time donation based on their financial leftovers.
â¢ Keep good records. To deduct donations for tax purposes, people must keep proper records of their contributions. The type and value of a gift may require specific forms of recognition from the recipient organization. For details, see Internal Revenue Service (IRS) publication 526.
â¢ Benefit from tax advantages. In order for a charitable donation to be tax deductible, the charity must be recognized by the IRS as a qualified organization. Most organizations can confirm their status or you can independently check on IRS.gov.
â¢ Give generously and wisely. From wills, living trusts, charitable annuities, endowments and mini-foundations to gifts of valued stocks, retirement funds or real estate, there are many ways in which individuals can make charitable donations. .
Special attention should be given when determining the option that matches your financial situation. Donating certain assets to IRS-recognized charities can potentially reduce capital gains tax. Life insurance can also be a great option to magnify a gift.
â¢ Consult with experts. Always consult a financial, legal and / or tax professional before implementing a donation plan.
When traveling to make a difference, donors should remember that there are many options for making a financial donation. Make sure you explore the options and get the right support along the way. By fully planning a charitable donation, a person can ensure that their head and heart are satisfied.
This article was prepared by Thrivent Financial for use by Robert Kopp, a partner at Thrivent Financial in Newberry, SC, who can be contacted at 803.260.1620.
Thrivent is a diverse financial services organization that helps people achieve financial clarity, enabling them to live lives of meaning and gratitude. Thrivent and its subsidiaries and affiliates serve more than 2.3 million customers, providing advice, insurance, investment, banking and generosity products and programs over the phone, online as well as through financial professionals and independent agents nationwide. Thrivent is a Fortune 500 company with $ 162 billion in assets under management / advice (as of 12/31/20). Thrivent is rated A ++ (Superior) by AM Best, a credit rating agency; This is the highest of the agency’s 16 rating categories and was confirmed in June 2020. Rating based on Thrivent’s financial strength and claims ability. Does not apply to the return on investment products. For more information, visit Thrivent.com. You can also find us on Facebook and Twitter.
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The concepts presented are intended for educational purposes only. This information should not be construed as investment advice or a recommendation of any particular security, strategy or product.
The article was prepared by Thrivent for use by Robert Kopp. He can be reached at 803 260-1620.