December 04, 2019 524 Dembi Dollo
Charitable activities are on the rise. The new generation is more conscious about the suffering of others, and their good fortune. This makes them want to give back to the community. The charity can also be good for your finance through estate and tax. For those looking to donate money to charity, it can be hard to decide the right way to start their philanthropic work. Here are some of the ways you can donate:-
Donor-advised funds - In this type of charity, you donate a nonrefundable amount to a non-profit which is involved in charity works. You can further direct the non-profit to utilize your fund the way you want. This way you can feel closer to the cause you want to support. YOu also receive tax deductions for your income tax statement that is an advantage in itself.
Property - If you have real estate that will cost a lot to sell due to tax rates then donating it is a good idea. You can get a deduction of the fair market value of your house if you donate your house. If you still live in the house, you can even transfer the property after your death through a deed prepared before. Real estate is a very sought after and good charity option for the people looking to help someone in need.
Cash - Cash is a simple and easiest way to donate money. You can donate the amount of cash for which you will get deductions minus any gifts or products you received for your donation. This type of donation’s merit is it can bring relief to a person in need faster. The demerit of cash donations is that there is a limit to the amount of hard cash you can donate. It’s not good for big amount of donations.
Private foundations - If you want control over your donations or have a very personal matter at heart then private charitable foundations will be the best option for you. The problem of this is the rules are very stringent in this but all the big organizations and companies use private foundations for their charitable work. You can also get the family involved which will spread a good giving culture amongst your family members.
Charitable trusts - There are two types of trust you can get involved in. A CRT trust is one in which you transfer your assets to the trust and then donate a proportion of it each year to a charitable organization. The amount left can be given to beneficiaries or kept in the trust. A CLT is similar in every sense except beneficiaries get paid before the income is donated to a charity. There are tax deductions available for this method too.
Donating and charity are important for everyone. Some need these donations and some want to help. Charity organizations help in connecting those who want to help people to those who need help. Its a noble task with also tax and personal benefits. To know more about donations, please visit https://www.dembidollo.org/donate.
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