The Tuesday after Thanksgiving has become known as Giving Tuesday, when people are encouraged to donate to charitable organizations. How can you maximize the effectiveness of your gifts – for the charity and for you?
First, ensure a charity is legitimate, with tax-exempt status. Also, do some research to determine if the charity is devoting most of its resources to its stated goal. An efficient charitable group will generally spend no more than 30% to 35% of its money on administrative costs.
Next, see if your employer will match your charitable gift. Many companies match employees’ gifts on a dollar-for-dollar basis, and some will go even further.
Finally, think about how you want to make your gift. If you give appreciated stocks, rather than cash, you may get a current tax deduction, assuming you itemize, and possibly avoid capital gains taxes you might incur in the future when you sell the stocks.
Giving Tuesday comes just once a year – but your charitable gifts can have lasting benefits.
This content was provided by Edward Jones for use by Daniel Pellerin, your Edward Jones financial advisor at 189 East Main Street Suite G, in Newport, (802) 334-6261.