Rethinking Charitable Giving

[sweeps]

Link: Rethinking Charitable Giving

1. Give now, choose later with a charitable gift fund run by a mutual fund company or broker.
2. Give securities.
3. Give fewer, more generous gifts.
4. Consider giving some money to a local community foundation or charity.
5. Do your due diligence.
6. Learn the difference between spending and giving.
7. Do write the checks. You'll want a record of how much you gave and when.

[creditcardfree]

I did not know about those charitable mutual funds. That is really neat. Does anyone do this? Which fund company do you use?

I agree on the due diligence. It's important to consider how much of your donation would go to the cause, and how much to the administration and marketing of the charity.

[rob62521]

It's funny, I was just discussing this topic with someone at church. We were talking about how many requests we get from groups wanting a donation and I said I guess you need prioritize where your spending goes for charitable groups since there are so many organizations out there. We aren't to the point of setting up charitable mutual funds, but it is interesting to read about it.

[disneysteve]

Originally Posted by Sweepsplayer

2. Give securities.

This is an often overlooked option. And you don't need to be wealthy to take advantage of it.

Last year, we had one mutual fund that had been on quite a run for about 5 years. It had grown tremendously in value and become far too large a part of our portfolio. Rather than selling shares and getting hit with a big capital gains tax bill, we donated shares to our synagogue. They got the full value of the shares. We got a deduction for the full value AND avoided the capital gains tax, saving us a few hundred dollars on a $1,000 donation. Good deal all around.

[poundwise]

Originally Posted by Sweepsplayer

Link: Rethinking Charitable Giving

1. Give now, choose later with a charitable gift fund run by a mutual fund company or broker.
2. Give securities.
3. Give fewer, more generous gifts.
4. Consider giving some money to a local community foundation or charity.
5. Do your due diligence.
6. Learn the difference between spending and giving.
7. Do write the checks. You'll want a record of how much you gave and when.

Good post and nice list!

I would add this point in conjunction with number seven on the list: "For record keeping, a canceled check or credit card statement generally is sufficient for IRS purposes when you donate less than $250. For larger donations, you will want to get properly worded receipt from the charity confirming your donation." source

[disneysteve]

Originally Posted by poundwise

Good post and nice list!

I would add this point in conjunction with number seven on the list: "For record keeping, a canceled check or credit card statement generally is sufficient for IRS purposes when you donate less than $250. For larger donations, you will want to get properly worded receipt from the charity confirming your donation."

I think that law is actually changing next year and you will need a receipt for any cash donation. I would double check that if you are donating after January 1.

[catlinye_maker]

Originally Posted by disneysteve

I think that law is actually changing next year and you will need a receipt for any cash donation. I would double check that if you are donating after January 1.

According to my MIL (Enrolled Agent) this is true. Also, if you are donating goods you need a valuation from the charity to claim them. This is a huge change from earlier policy.

[poundwise]

Just so no one misunderstands, at the present time, you need a receipt for any donation over $250 whether it is cash, check, credit card, or otherwise. A canceled check, for instance, is not sufficient according to the IRS.

As for the rules changing January 1st, I expect that's true and we'd all be well-advised to pay attention to the changes that are implemented.

[vsjhoc]

If you donate clothing, furniture, etc., the charity usually will give you a blank receipt, and you will have to determine the value. We all think our stuff is worth more than it really is, so here's a link to the
Salvation Army's valuation guide. For example, women's skirts are valued between $3 - $8.

[tinapbeana]

Originally Posted by vsjhoc

If you donate clothing, furniture, etc., the charity usually will give you a blank receipt, and you will have to determine the value. We all think our stuff is worth more than it really is, so here's a link to the
Salvation Army's valuation guide. For example, women's skirts are valued between $3 - $8.

gotta say, 3-8 bucks is actually more than i would have guessed....

[PRICEPLUS]

While I give money to charities I try to give time instead. Money can be replaced but my time cannot. I see it as valuable. No deductions though!

[tinapbeana]

Originally Posted by PRICEPLUS

While I give money to charities I try to give time instead. Money can be replaced but my time cannot. I see it as valuable. No deductions though!

price is right (HA!): your time is invaluable to a charitable organization. it's a phenomenon i have heard called "we need feets in the seats!"

[vsjhoc]

Originally Posted by PRICEPLUS

While I give money to charities I try to give time instead. Money can be replaced but my time cannot. I see it as valuable. No deductions though!

If you drive to a location to volunteer, you may be able to deduct for mileage.

[CRFSaver]

8. give to charities that spend all your money on what they are there for instead of 25-60% of your funds on things like salaries for "ceo's", beautiful offices and large staff. The last charity I donated to ate all the costs associated with administration and delivery of goods to the recipients. I.E. all my funds were spent on the toys for the childrens hospital.