Charitable Giving
You have planned carefully to maximize financial return in your lifetime and beyond – for those who need you now and who may survive you. Including charitable giving in your estate plan not only fulfills your desire to be altruistic, it can also provide significant income, gift, and estate tax advantages. Charitable giving is critical to the social and economic welfare of our country. Knowing this, the government gives you a choice. You can choose to be an “involuntary philanthropist” and support federal programs through the collection of taxes. Or you can choose to be a “voluntary philanthropist” and give to the charitable organizations that have special meaning in your life. If you choose to voluntarily give, the government allows you to benefit through tax savings. “Social capital” is that part of your income and wealth that the government does not allow you to keep.Your social capital is the money you pay to the government in the form of income and estate taxes. The government, however, does give you a choice. Rather than paying income and estate taxes, you are given the option of making significant charitable contributions and using those deductions to offset your taxes. Taxes or charitable gifts? The decision is yours. Why People Give to Charity People give to charities for many different reasons: generosity, religious belief, gratitude, hope for a better future. It is likely that most individuals make gifts for more than one reason. Reasons for gifting may include:
• Support a specific cause: “I really care!”
• Remember or honor someone,
• Repay a cause: “Thank you!”
• Create a legacy in the community,
• Benefit family members, and
• Dispose of assets when there are no heirs.
Strategies for Charitable Giving
Whether you are of modest means or an individual in the wealthiest segment of our population, charitable giving may be a significant element in your financial and estate plans. Each year the total dollar amount of charitable contributions made by individuals and corporations increases,
demonstrating that Americans feel support of charities is essential to our lives. There are many different strategies that can be used to make gifts to charities. Some involve the use of a trust, and others do not. If you are interested in learning more about these strategies please view the Charitable Giving Planning Grid
Leave a legacy that shows your commitment. If you are interested additional information, please contact Kim Deaton, Ohio Valley Chapter President at (513) 769-4400 or kim.deaton@nmss.org