The season for charity is upon us, and while most of us who give do not think about what we can receive in return, the benefits of charitable giving extend beyond personal satisfaction. Giving to a worthwhile cause is a wonderful way to celebrate the spirit of the holiday season while also securing financial benefits through tax incentives.
This, if desired, can provide additional opportunities for giving. With proper planning, tax saving can allow people to give to charities and/or to give more to their heirs.
Additionally, gifting to a charity can reduce estates to a level that will result in no estate tax implications. Instead of giving estate money to the government, you can keep it and use it to build a legacy.
There are also charitable-giving strategies that allow individuals to donate money to charities and receive a tax-free income while also leaving a legacy.
Donors have various options for charitable giving depending upon their financial situations and goals. It’s important to consult a financial adviser during the initial stages of planning to ensure all opportunities are explored in order to provide the maximum benefit to the donor and the recipient.