The last two months of the year are of great importance because of so many festivals and events. However, one the most heartwarming and socially import mat event is Thanksgiving. The thanksgiving is an occasion where not only does the whole family gather together and rekindle the love and affection, but it is also the occasion where everybody becomes a philanthropist and detonate as much charity as possible. Although it is a very Nobel deed and it does give you a tax efficient saving utilization. However, you still have to make a strategy as to where and to whom you want to donate your charity. In this regard, I am providing you some excellent wealth management tips so that you get the most in this season of giving.
A proper wealth management is a key to philanthropy, and thus it should be the most crucial part of your overall charity plan. Mention below is some of the tips which may prove helpful while taking your charity-giving decision.
Analyze your long-term investments:
No doubt, everyone should do charity, according to his or her capacity, however, when it comes to doing charity at the risk of your future, I suggest you better stress test your long-term investments. So it would be wise first to save your own nest and then make amendments to others. You can defer your plans to give away charitable lifetimes gifts and make your benevolent giving with estate plans and wills.
Test the charity for effectiveness:
Although I do realize that making a financial contribution in someone’s future is a soul-satisfying task, however, you have to do your homework before making any move. You have to determine the effectiveness of the charity by analyzing how much of your charity is going to utilize in the welfare programs and how much is consumed on the administrative and other expense of the organization.
Philanthropy comes with a benefit for both the giver and the receiver. If you are giving your money out to help someone this Thanksgiving season, then there is something in it for you too. The tax deduction is something which is associated with the charity giving. However, the charity you chose would impact the tax deductions directly. There are many organizations, charities to whom is not tax deductible. So while making a donation-giving, you have to be sure about the tax deduction status.
It is not the only case as there are certain charitable organizations which offer return gifts in exchange for donations and these gifts may decrease the amount of tax deduction. So you have to be conscious while accepting the gifts.
RMD’s – a charity tool
You can also use the RMDs to make a charitable contribution. An IRA allows you to create a 100k gift from you RMDs. This kind of charity is known as qualified Charitable Contribution. This grant is beneficial in a sense as it allows you to the deductions of tax on the amount of RMDs contributed.
In the end, I just want to add that a proper wealth management can help you come up with some charity giving strategies that can benefits you as well in return.