When you choose to contribute, you may not understand that donating to charity may offer you numerous personal rewards in addition to helping your favorite cause.
Charities require your assistance to continue their selfless efforts, but giving may feel just as wonderful as receiving. Whether you choose to give to a charity that aids people in poverty, advocates for environmental protection, assists animals in need or addresses other global or local issues.
Reasons to donate to charity:
To help others:
When you donate to a good cause, you are making the world a better place. Whether you donate your time, money, or expertise, there will be a recipient(s) who will benefit.
So much pain is caused by global poverty, maltreatment of nonhuman creatures, and other societal injustices. What responsibility do those who are reasonably well-off have to improve situations for others who are less fortunate?
These are problems that worry not only ivory-tower philosophers but those of us who place a high value on figuring out what it takes to live ethical, happy, and meaningful lives.
It can improve your well-being:
The act of assisting others, contributing to charity, or offering your time can make you feel better. It’s an excellent method to get that wonderful warm glow when you help a neighbor, a friend, a family member, or a coworker. Charity is not limited to the ultra-rich. You can significantly impact other people’s lives while also benefiting yourself – it’s one of those desired win-win situations!
You live with passion.
You give yourself the chance to nourish your passion and spend time doing things you enjoy when you contribute your time and money to a cause that is close to your heart.
Do you enjoy spending time with animals? You will feel wanted, engaged, and inspired by helping at an animal rescue. Do you think the most acceptable gift you can offer is education? You listen to your heart and ultimately fuel your passion by donating money to help females go to school.
To show gratitude:
Life is hectic, and it’s easy to forget to express thanks for everything you’ve been given. Thousands of charities and causes around the world are performing meaningful work. When you’re ready to donate and looking for a charity to support, it’s easy to forget how fortunate we are, and contributing to charity is a way to demonstrate our thanks. Encourage others to contribute by sharing your charitable gesture on social media.
What tax options are available for charity donations?
Understanding the tax implications of charitable contributions may help you determine how much to give, what asset to donate, and when to contribute so you can provide the most to charity while still receiving the most tax benefits.
Long-term appreciated assets
You typically don’t have to pay capital gains when you donate long-term valued assets to charity, such as bonds, stocks, or real estate, and you may claim an income tax deduction for the entire fair-market value. It may be as much as 30% of your adjusted gross income.
By naming an organization in your will or as a beneficiary of a qualified insurance policy, retirement plan, or trust, you reduce or even eliminate the estate tax burden for your heirs. Your Giving Account continues to support the charities you love, and your legacy lives on.
A donor-advised fund is a dedicated account for charitable giving. You are eligible for an immediate tax deduction when you contribute to a charity that sponsors a donor-advised fund program.
The money can then be invested for tax-free growth and recommended to any IRS-qualified public charity over time. Donor-advised funds not only help you organize and plan your giving, but they also save you money on income, capital gains, and inheritance taxes.
Some facts about charitable giving:
- Charity giving has risen at around one-third the rate of the stock market.
- Almost half of all contributors in the United States (47%) donate to three to five organizations, with 15% giving to six or more.
- The most generous month of the year is still December, followed by June.
- About 7.2 percent of overall fundraising revenue, excluding grants, was raised online.
If you have been thinking about charitable giving but aren’t sure how to start, feel free to reach out. Our team of experts will give you the right advice and make the whole process easier for you.