“I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.” - Jimmy Dean
Charitable events can be a fun and social way to interact with others who share in the belief of “The Good” any given organization brings to your community. Some are free to attend, most require ticket, and all are designed to raise money from attendees that night or at some point. The formula works, and I encourage each of you to support at least one charitable organization of your choice-support can come in many ways including donations of items or money, but many are happy take your volunteer time as well.
Charitable giving can also have tax advantages. That depends on your personal situation and many factors, your CPA/tax preparer should assist you in this area. Your investment accounts and retirement accounts however should not be ignored. Just like the oxygen mask on an airplane, take care of yourself first, and then you are better able to those around on a dependable basis. However, if you are blessed to be in a position to give, think about the donations of stocks, bonds, or other assets rather than cash. Assets which have seen a significant increase in value, may bring with them capital gains taxes if sold personally, donating low cost basis shares can allow you to capture a nice donation and potentially avoid the capital gains tax. If you have a workplace retirement plan or Traditional IRA account and have passed that magic 70 ½ age passing your RMD (required minimum distribution) as a charitable donation may again allow you to avoid taxation on those gains. It is always best to check with a tax professional before employing these methods, however they can be a more efficient way to help a Charitable organization you support. Remember, tax season can benefit someone besides the IRS.
Have a great week, and let us know should you have any questions around charitable giving or anything else.