Fortunately, you can give without regrets, and even without opening your wallet. The Wall Street Journal gives a number of helpful tips for generosity in the new year.
Donate appreciated stocks. When it comes time to rebalance your investment portfolio, consider donating appreciated stocks and mutual funds. “This helps you avoid the tax hit on the gain and helps the charity,” the article reports.
Give via the Internet. You can give while doing your typical Internet browsing and shopping by using services such as GoodSearch.com and GoodShop.com. You can also sign up for an app like Charity Miles, which gives you the opportunity to raise money for charitable organizations by walking or running.
Donate your time. If you don’t have money to give, consider giving your time and experience. From delivering meals to the homebound to socializing shelter animals, there is a volunteer activity for you. You may also donate your services, whether they be accounting or painting. When you volunteer at the charity itself, you get an up-close look at what the charity does and how it would use future monetary contributions you may give.
Give your things. Have your children outgrown their school clothes? Donate them to Goodwill, the Salvation Army, or another similar charity. Also consider donating school and art supplies, old sports equipment, and even airline miles. If you want to donate something of significant value, such as land, you might want to make sure that the charity has the resources to handle these assets. As a bonus, you can claim a deduction for donated items on your federal tax return (if you itemize it).
Donate your IRA distribution. If you’re at least 70 ½ years of age, you are permitted to give your Required Minimum Distribution to a charitable organization. According to the Wall Street Journal, “You can make a charitable donation of up to $100,000 per year (cash only, not stocks) from your IRA and not report the IRA distribution as taxable income on your federal tax return.”
Name the charity as a beneficiary. You can leave to charity after your passing without having to change your will: simply name your favorite charity as the beneficiary of your IRA.
Before making significant donations, make sure to contact an experienced estate planner and financial advisor. You want to make sure that you or your family won’t need the money that you are thinking about donating.