Presented by Ali Swofford, PhD., CLU, ChFC
Here are a few tips on giving effectively and maximizing the tax deductibility of your gifts for the 2014 tax year.
Check the Calendar - Donations made by check can usually be deducted if they are postmarked by December 31. Since online donations are processed instantly you may want to consider making last-minute donations by credit card.
Avoid Giving Cash - In order to deduct charitable gifts on your taxes, all donations must be substantiated by a receipt, cancelled check, or written acknowledgement by the charity. If you frequently give cash to organizations that solicit in front of supermarkets, malls, or local stores, you may be losing out on a major deduction. Consider supporting these organizations by writing a single check.
Donate appreciated stock. Many investors have stocks and funds with major unrealized gains in taxable accounts. If you have owned stock (or other appreciated assets) for more than a year, you can donate that stock to charity and take a deduction equal to its fair market value while avoiding the capital gains tax you would incur by selling it. Consult your tax advisor.
Give Locally - One of the best ways that you can make an impact in your area is to donate to local organizations or community foundations. By focusing on local needs, you can see the great impact of your gift. Even small contributions can make a big difference to food banks, homeless shelters, and animal welfare groups.
Research Carefully - New charitable organizations open their doors every day, and it’s wise to scrutinize potential gift recipients carefully before making a donation. Online tools like CharityNavigator.org or GuideStar.com are a great way to check out the legitimacy of organizations and ensure that your donations will be used as promised.
In the words of Winston Churchill: “We make a living by what we get. We make a life by what we give.” If you have any questions or would like more information about charitable giving, give me a call at 865-690-0049.
Content Provided by Marketing Library.net. Ali Swofford is an Investment Advisor of and, Securities and Investment Advisory Services offered through Woodbury Financial Services, Inc., A Registered Investment Advisor. Member FINRA, SIPC. Branch office is located at 251 N Peters Rd. Knoxville, TN 37923. Swofford Financial is not affiliated with Woodbury Financial Services, Inc. Neither Woodbury Financial Services, Inc., nor its registered representatives or employees, provide tax or legal advice. Consult tax or legal counsel for advice. Listed entities are not affiliated. This information is not intended to be a substitute for specific individual tax, legal or investment planning advice as individual situations will vary.
