If you have decided to make a charitable contribution to others, what would be the "fatwallet way" for doing so? Here are some suggestions.
Please note that this topic is not about the pros and cons of charitable giving, whether to give, how much to give or the merits of different charities (other than their contribution/revenue ratio).
2. Make automatic donations to meet high yield checking requirements and qualify for rewards offers Fatwallet topic
3. Make non-cash contributions Donate cell phones, monitors etc. Donate stock with unrealized gains if available (Thanks Ted1776) Examples: Cellphonedrive Throw Place
4. Donate time a) Locally Example: VolunteerMatch Note: Out-of-pocket expenses including transportation costs may be tax-deductible b) Online Example: If you tend to read free e-books, volunteer as a proofreader at Project Gutenberg
5. Make pre-tax contributions a) Payroll pre-tax charitable contributions Check with your employer if there is an option to have a percentage of your pre-tax salary donated to charity. Some employers have a list of allowed charities while others accept any 501(c)(3) charity. 501(C)(3) of Internal Revenue Code b) IRA charitable contributions If you are required to take a distribution from your IRA and if you were going to make a charitable donation anyway, you can give IRA money directly to charity, have it count as part of your required distribution for the year and not pay taxes on it. IRS IRA link c) In the UK, "Give As You Earn"Link
6. Optimize tax deductions for post-tax charitable contributions IRS list of organizations eligible to receive tax-deductible charitable contributions
7. Look for corporate matching gift programs on your contribution ehow link
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posted: Jul. 8, 2009 @ 4:55p
Ted1776
Member
posted: Jul. 8, 2009 @ 5:19p
I always donated stock with large unrealized gains.......but thanks to the recent down turn in the market, unrealized gains are hard to find these days.
narshe14
Senior Member
posted: Jul. 8, 2009 @ 5:29p
Ted1776 said: I always donated stock with large unrealized gains.......but thanks to the recent down turn in the market, unrealized gains are hard to find these days.
What is the advantage of donating stock with unrealized gains, is it that charities don't need to pay capital gains tax?
makingmovies
Senior Member
posted: Jul. 8, 2009 @ 5:47p
narshe14 said: Ted1776 said: I always donated stock with large unrealized gains.......but thanks to the recent down turn in the market, unrealized gains are hard to find these days.
What is the advantage of donating stock with unrealized gains, is it that charities don't need to pay capital gains tax?
If you were going to donate anyway, it's more efficient to donate appreciated stock. See link for an example.
Ted1776
Member
posted: Jul. 8, 2009 @ 7:03p
narshe14 said: Ted1776 said: I always donated stock with large unrealized gains.......but thanks to the recent down turn in the market, unrealized gains are hard to find these days.
What is the advantage of donating stock with unrealized gains, is it that charities don't need to pay capital gains tax?
Not only do you get the charitable deduction, but you also get to avoid paying taxes on the gains.
Search the interwebs. There is a hotel chain that offers a free night's stay, when you provide proof of 8 hours community service. Promo is something like "give a day, get a night".
If I find it, I will post. If you find it, add it to the summary (possibly as 4b), and credit to me is not necessary (as the proof is already in my response HERE...)
raringvt said: Ted1776 said: Not only do you get the charitable deduction, but you also get to avoid paying taxes on the gains.
What are these "gains" you speak of?Donate ge bot at $2, gift ge @ valuation as of gift date (say $10) = $8/share gain not paying capital gains on. Write off for charity = $10/share.
fasttimes said: I'm doing all my charitable donation via my will.
Is there an efficient strategy for doing so for an estate? What's your plan? (I'm assuming you are referring to beneficiary organizations and not individuals)
And for those stuck with unwanted timeshares they can't sell, I understand they can be donated. LINK
musikal67
Member
posted: Jul. 9, 2009 @ 3:05p
I like to donate FAR items to charities. For instance, right now (and for the next 6 months) I am putting together a tool package for our church youth auction comprised of FAR or almost FAR items from Menard's and other hardware stores. For example, just yesterday I purchased an Irwin Handsaw, 10x12 Tarp, bottle of Liquid Nails, and a roll of duct tape for $1.76 after rebate (of course tax is paid on pre-rebate amount) at Menard's. By the time the auction rolls around in 6 months, it should be nice package.
makingmovies
Senior Member
posted: Jul. 9, 2009 @ 3:42p
I have revised the quick summary. Please update as necessary.
musikal67 said: I like to donate FAR items to charities. For instance, right now (and for the next 6 months) I am putting together a tool package for our church youth auction comprised of FAR or almost FAR items from Menard's and other hardware stores. For example, just yesterday I purchased an Irwin Handsaw, 10x12 Tarp, bottle of Liquid Nails, and a roll of duct tape for $1.76 after rebate (of course tax is paid on pre-rebate amount) at Menard's. By the time the auction rolls around in 6 months, it should be nice package.
Does reducing the cost basis (via rebates / CC_ rewards) reduce the deductible amount? Or is that only for selling items?
Preemptively, it would be nice if we could keep the "homeless people just buy booze with your money" conversation out of this thread. Go here if you want to go down that line of discussion.
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