"You often just don't know what you're going to end up with if you donate" to smaller charities, says Ken Berger, president and chief executive officer at charity evaluator Charity Navigator. You may not know "whether or not [the charity] is truly well-meaning … and whether [it] is really vetting and thoughtfully finding the greatest need out there." Giving charitably can be a tough thing. You want to make sure your money goes as far as it can. A lot of donors choose smaller charities with less overhead to help ensure their money is used as intended and to the…
The recent passing of Steve Jobs has, for many admirers, raised anew the question of anonymous giving: is it better to give without taking credit? As a recent Reuter’s article points out, whether for Jobs or for the average donor, there are some important considerations to bear in mind. Jobs was famous for a great many accomplishments, not the least of which was being a self-made entrepreneur who transformed a garage-sized company into a titanic icon. As a result, he was a powerful force in business and popular culture alike. He also is famous for not being a charitable giver,…
Simply defined, a charitable remainder trust allows you to transfer cash or assets to the trust — from which you may receive income for life or, if you prefer, a fixed term not to exceed 20 years. The income can be paid over your life, your spouse’s life and even the lives of your children and grandchildren. (The guidelines are outlined in IRS code section 664.) In essence, the trust takes advantage of the tax-exempt status of the nonprofit it benefits. Sometimes, giving an asset to charity doesn’t mean you can no longer enjoy benefits from it. Yes, it’s true….
Giving to charity over your lifetime can be powerful. Not only can you make an impact on the charities you care about, but you enjoy personal satisfaction and even charitable deductions. Still, since the tax laws are in a state of flux (and we can only expect them to become more uncertain as the politics in Washington continues to boil over), making substantial lifetime gifts may become more dicey, especially given the fragile economy. As a result, giving at your death may be more attractive and practical. As the Wall Street Journal points out, there is always the option of…
In addition to a spirit of charity, information about the object of such giving is essential. A gift can have greater impact when it is intentionally given to effect an outcome. Interestingly, The Center on Philanthropy at Indiana University recently released the Million Dollar List, an interesting tool for empowering the philanthropist and the nosy alike. This list is a compilation of all available information on publicly-announced gifts of $1 million or more. It is further organized by several metrics and into various charts. The list enables searches by state, organization type, and even individual donors. Browsing through the list…
There’s a lot of commotion surrounding President Obama’s jobs bill. Small businesses, for one, are lukewarm since their concern is less for tax-breaks and more for actual revenues. But the biggest detractors so far may just be charities and those that give to them: the bill proposes eliminating some of the deductions for charitable giving amongst high earners. The jobs bill comes out to a $447 billion price tag, and much of it would be paid for by limiting the tax deductions for charitable giving amongst top earners making $200,000 a year or more. Currently, these earners can deduct 35…
The idea of giving to charity would seem to be a simple, but the simple methods aren’t always the best ones. Sometimes a bit of financial finesse can go a long way, helping both your charity of choice and your own finances. I refer to that as “doing well by doing good.” If you want to be a tax-savvy philanthropist, consider using a time-honored strategy known as a “charitable remainder trust” (CRT). The Times-Herald Record recently offered a crash course in their article, “Protecting Your Future: Trust option for leaving assets to charity.” A CRT allows you to give assets…
According to some barometers, there has been a recent surge in charitable giving over these, the first few months of 2011. Apparently, a good number of people have figured out that now is a good time to give. As a recent article on InvestmentNews.com reports, “The Vanguard Charitable Endowment Program, the nation's second-largest, collected about $129 million during the first quarter, a 60% in- crease over the same period a year earlier. Donations out of the $4.8 billion fund totaled $87 million, a 31.2% increase from $66 million.” Why the sudden increase? The new tax deal reached in December makes…
If you’re feeling charitable this holiday season, I certainly encourage you to follow those passions and make heart-felt charitable donations. However, while you certainly want to be cheerful giver, there’s no reason you shouldn’t also be a tax-savvy one! There are a number of ways to accomplish a strategy to both support worthy causes, and reduce your tax-bite at the same time. In fact, MarketWatch recently offered a concise list of five tax-savvy strategies: 1. Donor-Advised Funds: A donor-advised fund is like your own private foundation, without the onerous administrative costs or duties. Although you lose final say in the…
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