Why Charitable Giving Matters for Your Finances
As the holiday season approaches, many people begin to think about what they are thankful for. November is a time when families gather, reflect, and often feel inspired to help others. Charitable giving is one way to show gratitude, and it can also be part of a smart financial plan.
If you are considering donating before the end of the year, it may help to understand how charitable giving fits into your overall finances. In many cases, donations to qualified charities can lower your taxable income. This means you might pay less in taxes when you file your return. To take advantage of this benefit, you must itemize your deductions, and your donation must go to an approved organization. A financial advisor or tax professional, like the ones at DeSantis, Kiefer, Shall & Sarcone, can help you decide if this option is right for you.
Donor-Advised Funds and Stock Donations Explained
Some people give money directly, while others choose different methods. One helpful tool is a donor-advised fund. This type of account allows you to make a donation now and decide later which charities will receive the funds. You can also donate assets such as stocks, which may have increased in value over time. Giving appreciated stock instead of selling it first can help you avoid capital gains taxes and increase the value of your donation.
How to Choose the Right Charity
Before giving to any charity, it’s important to make sure the organization is trustworthy. Look for groups that clearly explain how they use donations and how much of those funds go toward their programs. You can use websites like Charity Navigator or GuideStar to read about a charity’s background and see how they are rated. These tools can help you feel confident that your gift is making a real impact.
Get the Whole Family Involved in Giving
Charitable giving can also become a meaningful family tradition. Including children in the conversation teaches them about generosity and helps them see the value of helping others. You can choose a cause together, volunteer your time as a group, or set aside a portion of your holiday budget for giving. These moments can help build strong family values and lasting memories.
Make a Charitable Giving Plan Before December 31
As the year comes to a close, it’s easy to get caught up in holiday shopping and busy schedules. Taking time to give back not only supports important causes but can also provide financial benefits when done with care and planning. If you’re considering a year-end donation, now is a good time to talk to your advisor, review your options, and make a plan that works for you and your family.
Finish the Year with Purpose Through Giving
Giving thanks feels even better when it leads to giving back. With the right approach, your generosity can make a difference for others and help you finish the year with purpose. At DeSantis, Kiefer, Shall & Sarcone, our experts are here to guide you as you consider your year-end charitable giving.
