Charitable Giving Year Round
Charitable giving is typically focused around the most generous time of year – the holidays. Strategic charitable giving is an opportunity not only to set a budget for your donations, but also to plan a schedule that can optimize how you give.
Below are some strategies to make your charitable giving a year-round habit.
Make it automatic.
- Many charities will allow you to set up automated monthly donations. This provides the charity with a steady, dependable source of income and makes setting up your budget easier. Setting up automatic payments is easy and ensures that you will never forget to make a payment.
Don’t think of goals as a one-time burden.
- When setting goals for your charitable giving strategy, many people come up with a specific amount that they want to donate each year. However, this number can get overwhelming when thought of as a lump sum, and might even make you underestimate how much you can give. By spreading out donations over months or even years, charitable giving instantly seems more affordable rather than thinking of your bank account taking a large, one-time hit.
Use deductions when they have the most impact.
- Donations provide tax deductions no matter what time of year you donate, but your tax bracket may change from year to year. Deductions are more powerful when you’re taxed at a higher rate. If you know your income will be decreasing in the next tax year, you may want to make extra donations this year and take advantage of higher deductions.
Different charities, different needs.
- Each type of organization will have different seasonal needs. For example, many educational institutions solicit more donations during June, when their fiscal year ends. Research or simply asking your favorite charities when their biggest time of need can help you determine how you can give when they need it the most.
Take advantage of Endow Iowa Tax Credits.
- The Endow Iowa Tax Credit program promotes gifts to qualified permanent endowments by awarding up to 25% of the amount donated as a state tax credit when making a gift through Iowa community foundation.
Charitable giving can be an important part of your financial plan. First Point Wealth Management is here to give you advice and answer questions regarding any aspect of your financial plan, contact Don Rahn, CFP® at 515.663.3078 or email Don.Rahn@FNB247.com to learn more about charitable giving in your life or if you have any other questions about financial planning.