By Joe Betcher
The season for charity is upon us, and while most who give do not think about what they can receive in return, the benefits of charitable giving extend beyond inner satisfaction. Giving to worthwhile causes is a wonderful way to celebrate the holiday season and can also provide financial benefits to the donor through tax incentives. This, if desired, can provide additional opportunities for giving.
Tax savings with proper planning can allow people to give to charities and/or to give more to their heirs. By doing strategic planning, people are able to use what could be the government’s money for gifts to charities and for the legacy of their family.
Additionally, gifting to a charity can reduce estates to a level that will result in no estate tax implications. Instead of giving estate money to the government, people can keep it and use it to build a legacy.
There are also charitable giving strategies that allow individuals to give money to charities and receive a tax-free income while still leaving a legacy.
Donors have various options for charitable giving depending upon their financial situations and goals. It’s important to consult a financial advisor during the initial stages of planning to ensure all opportunities are explored in order to provide the maximum benefit to the donor and the recipient.