Charitable Giving Basics: How to Donate Simply and Effectively
Charitable giving in Columbus, Ohio, can be straightforward. You can directly donate by writing a check, giving cash, transferring stocks, or signing over property to a charity. However, there are also more complex strategies that allow you to maximize your impact while considering your financial situation.
Getting the Right Guidance When Making a Substantial Charitable Gift
If youโre planning a significant charitable donation, itโs crucial to consult with a knowledgeable estate planning attorney at Jarvis Law Office, P.C. Our team has experience in investments, property, tax, and all types of charitable transfers. Weโll ensure your gift is structured optimally for both tax efficiency and maximum impact on the cause you care about. Why is this important?
- Planned gifts can provide significant tax benefits and also even lifetime income for you and your family.
- Jarvis Law Office, P.C. will outline charitable giving strategies that align with your values and financial objectives.
- Among the options weโll explore with you include charitable trusts and charitable gift annuities.
- Many people make planned gifts as testamentary bequests to charities in their wills orย revocable living trusts.
- Life insurance is a common means to leverage charitable giving.
The Tax Benefits of Charitable Giving
Planned gifts offer tax benefits that can be significant.
- You can reduce your ordinary income taxes and avoid capital gains taxes on appreciated assets through charitable deductions.
- This can provide substantial financial advantages while allowing you to support the causes you care about.
There are many additional benefits to charitable planning beyond this brief overview, so contact our Columbus charitable planning attorney to explore your options.
Here Are Several Ways You Can Give
A Life Income Gift
This approach provides a future income stream for the charity while also providing a tax deduction and current income payments to you and your family. This gift can be flexible with fixed, variable, or deferred payments.
Bequests and Retirement Plans
You can name your charity as a beneficiary of your will or revocable living trust โ or name the charity as a beneficiary of a retirement plan, such as an IRA, 401(k), 403(b), or other retirement fund. This can be a win-win, especially when it comes to retirement plan assets. There are no income or estate taxes on any retirement plan assets left directly to a charity.
Charitable Lead Trusts
This trust can be used to leverage the eventual transfer of appreciating assets to family members in light of current and future estate and gift tax consequences. Essentially, this approach provides immediate support to your charity through fixed payments for a specified period. At the end of the term, the trust will revert to your loved ones by transferring all of its remaining assets to them with reduced or no estate and gift tax burdens.
Retained Life Estate
Giving real estate (e.g., a home or farm) to your charity can generate a current income tax deduction, but you still retain the right to use the property during your lifetime.
Again, these are just a few (of many available) planned giving strategies you can use to make your gift. Charitable giving is a great way to support your favorite non-profit interests. Even better, planned giving can help you make sizeable gifts that can benefit both charity and your family.
Whether youโre looking to reduce taxes, leave a lasting legacy, or align your financial goals with your values, Jarvis Law Office, P.C. can explore these and additional strategies with you, depending on your unique circumstances.
Contact our Columbus, Ohio, office today to discover how we can help you make a meaningful difference for future generations while achieving your financial objectives.