New Year, New Giving: Mapping Out Your Charitable Gifts for the Year Ahead
Charitable giving is a way for you to participate in something meaningful to you and your family, a cause that aligns with your core values while benefiting members of the community. People can benefit greatly from giving – personally, psychologically, and financially. The new year tends to represent a new start, or a personal makeover, changing not necessarily just the way you look and feel through an inspired diet or exercise regimen, but how you embrace your values.
With the new year approaching, what better way to reexamine who you are than by giving to someone or an organization that needs it. Read on as we dive into the aspects of charitable giving to help keep you focused on becoming the new you this new year.
Conduct a Self-Assessment
What is driving you to give? What are your goals for giving? Giving is very personal, and everybody gives for their own reason. For some, it is a reflection of their life experiences, something within the environment or nuance within the culture that inspires them. For others, it may be purely financial as they seek out tax advantages.
Determine What You are Interested in Giving
Cash, other assets such as art, or even your time – There are a variety of ways to give to charity. Determine which method works for you and your giving strategy. Consider these ideas for impactful giving:
- Financial donations such as cash, stocks, bonds, or other securities. You can donate online, through the mail, in-person, over the phone, or through a donor-advised fund.
- Specific assets such as clothing, children’s toys and games, a vehicle, artwork, hotel points, or other items.
- Tax considerations may play a part in your decision. A financial professional can help you navigate the impact tax could have on your giving strategy.
- Talk to your employer about your giving plans. Many employers will offer to match your contributions.
- Consider volunteering as a means of charitable giving. Giving doesn’t only involve cash and assets. You can also give your time, knowledge, or specific skill set.
Causes Meaningful to You
Giving to causes that matter to you can go far beyond the financial aspect. Giving because it makes you feel good inside may be more beneficial than doing it for a financial reason.
Research Potential Charitable Organizations
If you are interested in giving it is helpful to do your research and learn about the different charitable opportunities. There are resources and tools that are available that can help you navigate the world of philanthropy so you can get the most out of your giving. Some of these include:
- Charity Navigator
- GuideStar
- Center for Effective Philanthropy
- Fidelity Charitable
Research Possible Tax Considerations
Before you meet with a financial professional, do your own research to learn how proper tax planning could help to reduce several kinds of federal taxes: estate taxes, income, and capital gains. Becoming knowledgeable through your own efforts may help you understand more thoroughly how your decisions impact you from a tax standpoint, now, and into the future.
Consult Your Financial Professional
All forms of charitable giving could have some impact on your financial goals and strategies. It is critical to meet with a financial professional to conduct a comprehensive review of your current situation, how you plan to give, and how it could shape your future financial decisions. Let the new year be that new start for how and why you give. It is never too early to meet with your financial professional to start creating a giving strategy.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by LPL Marketing Solutions
LPL Tracking # 646890
Sources:
Nonprofit data for donors, grant-makers, and businesses | GuideStar | Candid
Home-CEP | The Center for Effective Philanthropy
Research Charities | Fidelity Charitable
Charity Ratings and Donor Resources | Charity Navigator
Charitable Contributions: Tax Strategies (fidelitycharitable.org)