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.
-
Ten Cheapest Places to Live in TexasProperty Tax Looking for a cheap place to live in Texas? Look no further. These counties have the lowest property tax bills in the Lone Star State.
-
AI Is Missing the Wisdom of Older Adults: What It Means for YouAI will increasingly affect your healthcare and finances, but young workers are primarily designing the systems and getting most of the jobs.
-
The Three C's to Financial Success: A Financial Planner's Guide to Build WealthConsistency, commitment and confidence in your chosen strategy are more critical to your financial success than finding the 'perfect' financial plan.
-
A Financial Adviser's Guide to Solving Your Retirement Puzzle: Five Key PiecesIf retirement's a puzzle you're struggling with, try answering these five questions. The answers will guide you toward a solution.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or RelocateHomeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and FriendsWhat starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
What the HECM? Combine It With a QLAC and See What HappensCombining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.
-
721 UPREIT DSTs: Real Estate Investing Expert Explores the Hidden RisksPotential investors need to understand the crucial distinction between a REIT's option to buy a Delaware statutory trust's property and its obligation.
-
I'm an Insurance Expert: Yes, You Need Life Insurance Even if the Kids Are Grown and the House Is Paid OffLife insurance isn't about you. It's about providing for loved ones and covering expenses after you're gone. Here are five key reasons to have it.
