Maximize Charitable Giving Tax Savings and Give All Year
At the end of the year, the majority of contributors prioritize giving to charity. It is logical. Throughout the holidays, people and families frequently feel exceptionally benevolent. As a result, nonprofits frequently make their most important requests for funds at this time.
Also, the upcoming ball drop on New Year's Eve serves as a festive reminder of the deadline for making any monetary adjustments to lower that year's tax bill. According to Network for Good, this trifecta causes over 30% of all charitable gifts to be made in December, along with a better grasp of one's taxable income for the year.
Most donors' motivations for giving go beyond seeking tax advantages. Giving is done by those who desire to make a difference for the organizations and causes they support. They are philanthropic people by nature. Donors can significantly increase the effectiveness of their contributions by making wise tax, investment, and timing decisions.
Any nonprofit organization or charitable-minded person, however, can attest to the fact that this impact goes well beyond the giving season, which is the period between Giving Tuesday (the Tuesday after Thanksgiving) and New Year's Eve. In addition, disasters and other urgent requests for financial assistance frequently highlight the nonprofit sector's year-round need for funding.
If you make a charitable contribution or donation at any time of year, you will receive tax benefits when you file your taxes for that year. Individuals who rush to give to charities at the end of the year frequently do so because they want the charitable deduction for that year but have yet to give earlier in the year. This can be due to various factors, including forgetting or needing to know where to give, not having the time to decide where to give, or their accountant nudging during the giving season specifically for tax purposes.
On the other hand, traditional charitable giving strategies that focus on the end of the year create opportunity gaps throughout the rest of the year. Donors may feel pressed to choose between maximizing tax benefits and maximizing charitable impact. The reality is that these objectives should – and can – be aligned. Giving strategically and thoughtfully and lowering your tax bill means more can go to charity.
At Copley Financial Group, Inc., with offices in San Diego, CA. and Uniondale, NY., we're here to help you with any question that you may have. So send us an email, give us a call, and the team and myself will be there to help you.
This material has been prepared solely for informational purposes and is not intended to provide, nor should it be relied on for, tax, legal, or accounting advice. Accordingly, before entering any transaction, you should consult with your tax, legal, and accounting advisors.
