Charitable giving: Where head and heart meet
How can a person support organizations that help people in need? Some may choose to give their time and abilities through volunteer service, while still others provide financial support. Charitable giving provides an opportunity to engage both head and heart in making a difference. The following tips from Thrivent Financial can help donors make the most of their charitable gifts.
· Choose a reputable organization. Never give to an organization without first knowing its purpose and effectiveness. The Philanthropic Advisory Service of Better Business Bureaus and National Charities Information Bureaus can help.
· Budget for donations. Systematic gifts spread throughout the year may help donors give more than if they give a one-time gift based on their financial leftovers.
· Keep good records. To deduct donations for tax purposes, people must keep appropriate record of their contributions. The type and value of one’s gift may require specific forms of acknowledgement from the recipient organization. For details, see Internal Revenue Service (IRS) Publication 526.
· Take advantage of tax benefits. For a charitable donation to be tax-deductible, the charity must be recognized by the IRS as a qualified organization.
· Give generously and wisely. From wills, living trusts, charitable gift annuities, endowments and mini-foundations to gifts of appreciated stock, retirement funds or real estate, there are many vehicles through which individuals can make charitable gifts. Special care should be used to determine the option that meets one’s financial circumstances. Gifting some assets to IRS-recognized charities may potentially reduce capital gains tax. Life insurance may also be an excellent option to magnify a gift.
· Consult with experts. Always consult a financial, legal and/or tax professional before putting a gifting plan into action.
When moved to make a difference, donors should remember there are many options for making a financial gift. Just be sure to explore the options and enlist appropriate support along the way. By fully planning a charitable gift, a person can ensure that both head and heart are satisfied.
This article was prepared by Thrivent Financial for use by local area representative Damian Varela. He has offices at 50 Sawyer Drive on Cudjoe Key, and can also be reached at 305.998.8777.
About Thrivent Financial
Thrivent Financial is a financial services organization that helps Christians be wise with money and live generously. As a membership organization, it offers its nearly 2.4 million member-owners a broad range of products, services and guidance from financial representatives nationwide. For more than a century it has helped members make wise money choices that reflect their values while providing them opportunities to demonstrate their generosity where they live, work and worship. For more information, visit Thrivent.com/why. You can also find us on Facebook and Twitter.
Insurance products issued or offered by Thrivent Financial, the marketing name for Thrivent Financial for Lutherans, Appleton, WI. Not all products are available in all states. Securities and investment advisory services are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415, a FINRA and SIPC member and a wholly owned subsidiary of Thrivent. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc. They are also licensed insurance agents/producers of Thrivent. For additional important information, visit Thrivent.com/disclosures.
