Making the most of your giving strategy
December is a good time to evaluate how much you've donated to charitable or tax-deductible causes this year. If you're ready to give more, or you'd like to maximize your donations for 2025, here are a few things to consider:
Research before giving. Learn about the different charities that are available and choose ones that align with your values and interests. Look for charities that are reputable and have a proven track record of making a positive impact. You may also want to check into how the organization divides funds to ensure you are comfortable with how they use your contribution.
Consider your tax situation. Charitable donations can be a tax-deductible expense, so it's important to understand how your giving can impact your taxes. Donating appreciated assets, such as stocks or bonds, can be a tax-efficient way to give. You may be able to avoid paying capital gains tax on the appreciated value of the asset, and you may be able to deduct the full fair market value of the donation. Consult with an advisor to learn more about the tax benefits of charitable giving.
Donate regularly. If the charity or your bank allows it, you may be able to set up a recurring gift. This is a great way to ensure you give a little bit regularly, which adds up over time. Keep track of your giving throughout the year, as that record can be used when it's tax time.
If you want to make a positive impact but aren't financially able to do so at this time, look into ways to volunteer for your favorite causes. Sometimes financial gifts are needed, and sometimes extra hands doing the work are needed. Whatever you choose, know that your efforts help make the world a better place.
