Giving to charity can benefit you as well as the organization.
Are you passionate about specific causes?
Do you want to support nonprofits?
Are you concerned about your financial ability to do so?
According to a recent Investopedia article titled “A Primer on Philanthropic Vehicles,” giving to charity can be a mutually beneficial relationship both in your estate distribution planning and while you are alive.
There are also a number of ways to give to charity.
The first is through a direct monetary donation.
This is often done through cash or check.
You could also give "appreciated" securities.
What are these?
Appreciated securities include mutual funds, individual stocks, closed-end funds, or ETFs that have gone up in value since you acquired them.
How do you make these donation?
You will need to contact the charity to see if they accept these types of donations.
If they do, you can transfer the shares directly to the organization from your brokerage account.
Why would this be beneficial?
You would get a tax benefit from your charitable gift based on the market value of the donated shares.
You would also avoid capital gains taxes upon their sale.
Another option of giving is through non-securitized assets.
What are these?
These include items like private stock in business, art, real estate, or collectibles.
Like appreciated securities, your deduction will be based on the market value not your basis.
The organization must be able to take these gifts, however.
You will likely need to hire a third party to appraise the value of the assets.
A final option to consider is a donor-advised fund.
Whatever option you choose, you will be making a difference in the lives of others.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Investopedia (April 16, 2018) “A Primer on Philanthropic Vehicles”