Giving to charity is now easier than ever – especially during the holidays. Whether writing a check, opting to “round up” at the register, or simply clicking a “donate” button, you can quickly make a donation and be on your way. But after a few minutes, that good-deed feeling fades, and you may be left wondering if your contribution made a significant impact. What if you could make your giving reach more people this year?
Here are five tips to maximize your giving, just in time for the holidays.
1. Find matching opportunities.
Many charities have annual fundraising campaigns with mega donors who match contributions — sometimes as much as 3:1 — received during specified timeframes. Check to see if your favorite causes have similar opportunities that could double or even triple your impact, and help the organizations reach their goals.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Employers often offer matching programs, too, which can make a big difference to nonprofits. You can even start a program in which you supply the funds for a future matching challenge.
2. Make it a family affair.
The holidays offer a rare opportunity to get the whole family together, and it’s the perfect time to get your kids and grandkids involved in giving. One idea is to create a “giving budget” to donate to charity. Each child then suggests a cause to help everyone decide where and how to distribute the “budget.” Actual dollars can then be given for the holidays — and even matched by grown-ups. The possibilities are limitless.
Looking for more family-friendly giving ideas? Foundation Source’s The Secret to Joyful Giving guide can help.
3. Formalize your giving.
If you don’t have a charitable vehicle but have been giving consistently and expect to give more in the future, several options are available to ensure your gifts are more organized, strategic and tax efficient. You can diversify and expand your giving with vehicles like a private foundation or a donor-advised fund that will earmark assets for charitable purposes and potentially provide meaningful tax benefits.
Private foundations offer flexibility, control and other unique advantages that support creative and entrepreneurial philanthropy. Donor-advised funds provide advantages like anonymity and higher tax deductions. You can also incorporate your philanthropic objectives into your will or estate plan and explore planned giving and trusts.
4. Don’t forget Uncle Sam.
Coordinating your charitable contributions with your tax strategy, estate planning and investment management could result in better outcomes — across all disciplines — and ensure that you get beneficial tax deductions, which in turn allows you to give more. With charitable vehicles like private foundations and donor-advised funds, you can maximize your tax savings and may be able to claim a same-year tax deduction.
5. Know your minimums.
If you have a charitable vehicle with a minimum distribution requirement, make sure you know what it is and how much you have left to disburse so your assets are used for charitable purposes and not penalties. For example, private foundations are required to annually distribute at least 5% of the previous year’s average net assets.
Qualifying distributions from the foundation include grants to public charities, administrative expenses and certain costs related to carrying out the foundation’s charitable purpose, such as a building, computers and office furniture.
©2021 Foundation Source Philanthropic Services, Inc. All rights reserved.
-
Time to Spring-Clean Your Finances: A Financial Professional's Four Steps to Tidy Them UpA midyear review of everything from spending to saving, with adjustments as needed, can set you on track to financial security. Plus, don't forget to check in on your workplace benefits.
-
Why a Law Firm Secretly Recording Client Conversations Is Wrong (and Illegal)A law firm that has been recording client conversations without the clients' knowledge or permission and has threatened employees if they speak out faces legal and ethical challenges.
-
Donating Complex Assets Doesn't Have to Be ComplicatedIf you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term CareMany people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Such Attractive Yields in High-Grade Munis Are Rare and May Not Last LongAccording to this munis expert, the last time munis were this cheap was a brief period in 2023. If you kicked yourself for missing out then, you have a second chance now.
-
Financial Analyst Sees a Bright Present for Municipal Bond InvestorsHigh-tax-bracket investors have an excellent opportunity to secure low-volatility, high-quality returns at yield levels rarely seen in over a decade.
