What is Charitable Giving?
Charitable Giving is the act of giving, whether in this life, or after you die, to accomplish some good. Typically people mean that you must give to approved charities such as an IRS 501(c)(3) corporation. These may include incredibly broad topics, but common places for charitable donations to go include hospitals, medical research groups, religious organizations, organizations to help the poor, education institutions, etc. For the purposes of this page, references to charity, charitable organizations, and charitable donations will be to those involving IRS approval.
Charitable Giving is Important
Charitable Giving is very important as it supplies many good and worthy causes with funding these causes would not otherwise receive. We cannot rely upon a benevolent government to take what it wants from us and spend our money the way we want to spend it. It has never worked like that and wont ever work like that. Currently we have tax incentives to donate to charity. We will also benefit emotionally and spiritually from Charitable Giving.
Charitable Giving Contributes to Estate Planning
Most people give gifts to charities while they are alive, but some include gifts to charities in their estate plans. Few know that they can give property to charities now, retain some of the use of those properties during their life, and still get a tax break for the donation now. Sometimes people make large donations to charities now and receive ongoing payments back from the charity for the remainder of their lives. This also comes with tax deductions.
How Charitable Giving is Used
In a basic estate plan, charitable giving is truly just that, charity. Basic estate plans usually do not take into account tax planning. A person is free to donate to charities of their choice. Most Americans do not own assets exceed the estate tax exemption limits at the time they pass away. Most Americans prefer to give to charity outright, or wait until after they are gone. Many people choose to include some giving in their estate plan.
More advanced estate planning techniques allow the giver to give a gift to charity after they pass away, but take the tax deduction for the gift now. There are also ways to make charitable gifts pay you cash every year for the rest of your life. For more details, consult with one of our attorneys.
How to Know if Charitable Giving is Right for You
Can you think of anything good you can do with your money? Any good you can do with your home? There are plenty of good things out there. Local colleges often have large numbers of scholarship funds set up to pay for education. Sometimes the scholarships are limited to an individual’s heirs, or programs like engineering or nursing. A quick search for scholarships at UVU reveals that hundreds of scholarships serve the student body. Many of these scholarships originate from donors who leave a portion of their estate for just such a charitable act.
One of the best charities one can support is their own family. Providing for education, incentives to work, and other good things help bless a family for generations. How do you want to benefit others with your money?
Where should I go for help with Charitable Giving
The Abbott Law Firm has been helping businesses and families prosper for 20 years. To see what Paul Maxfield can do to help you prosper, call for your estate planning consultation today. (801) 374-3000