5 tips for charitable giving

Considering giving more to charity this year? Use these tips to ensure your goodwill is appropriately accommodated and that you earn any associated tax benefits for 2020.

1. Donate early and complete your gift by December 31^st – A gift by check is complete when mailed (postmarked) to the charitable recipient, even if not cashed until the following year. Gifts by credit card are complete when your credit card account is charged. Gifts of stock and real estate are more complex so you’ll want to make sure you have enough time to make the necessary arrangements.
2. Consider your income – Take time to understand your tax liability for the year. Did your unearned income increase? Did you sell any appreciated assets? The answers may determine how much you want to give.
3. Research the charity – Unfortunately, there are fraudulent charities that will take advantage of your goodwill. To avoid this situation, ask for written information about the organization. A legitimate charity will give you information about their mission, how your donation will be used and proof that your contribution is tax deductible.
4. Discuss Your Strategies With a Professional – Speak with your accountant or financial adviser to ensure your contribution is appropriate to your situation.
5. Designate your gift – Some charities will permit you to specify exactly where your gift is going and for what specific need. This helps you control where your donation goes and whom it helps.

This article is not intended to provide specific tax advice on charitable contributions. Speak with your accountant or tax adviser for specific recommendations.