Charitable Giving is an important topic for us at Sapers & Wallack year round, but especially during the holiday season when the needs of so many come under heightened focus. My family and I remain active supporters of many charities in the Boston area. We give as much as we can to those in need, knowing that so many are not as fortunate as we are.
At Sapers & Wallack, Inc. each year we strive to volunteer as a team, donate to the important work of many local non-profits, and act as a sponsor of events that bring the community together. Fortunately, many of you are already as deeply committed to giving to various organizations as we are.
With the season of giving in full swing, I would ask that we all take a closer look at our charitable giving habits, and consider strategies to maximize our contributions to the organizations we believe in. Writing a check or putting a donation on a credit card is not the best way to give. When doing so, you end up paying an entire dollar for every dollar you give to the charity.
So what are better ways to give?
- Donate appreciated stock
In doing so you don’t have to pay taxes on the gains of the stock donated. If you want to still own that stock, buy it again with cash you were going to donate at the current price.
If your charity of choice can’t handle the donation of appreciated stock, or if you would like to diversify your giving, a DAF is a fantastic option. This vehicle allows you to gift stock or cash directly to a DAF, and receive your deduction in the year you gift it, though it can also stay in the DAF until such time that you feel like gifting it to specific charities.
For those of you who are a bit older and are contemplating dropping old life insurance policies, consider donating them to charity. This way, you can get a tax deduction on your giving, instead of simply cashing in your policy and possibly incurring a tax penalty if there are any gains.
Maximizing the amount a charity can receive is a topic near and dear to my heart, which is why I talk and write so much about it. You may be interested in our newest video, where I specifically explain better ways to give with examples:
’Tis the season – but this time, let’s make sure that we give intelligently so that those in need can get the most out of what we can give them.