A donation is a donation regardless of its intent. If you want to donate your hard-earned money because it will make you feel better, then that’s phenomenal. And if you want to donate solely to reap the tax benefits, then that’s fine as well. The donations will still do their part. If you’re interested in donating or gifting your assets in any way, I’ve compiled a few tips and tricks on how to do so effectively.
Donor-Advised Funds
If you’re looking to donate your assets to charity, you might want to consider opening up a donor-advised fund. For those unfamiliar, a Donor-Advised Fund (DAF) is an account established within a charity that has personal assets contributed to it; after some time, it can grow tax-free until a grant is made. You, the donor, will receive a tax deduction.
Family Foundation
Depending on your level of wealth, you might be able to start a family foundation. The foundation is founded with the sole purpose of providing charitable donations to various charities. Family foundations require a great deal of effort and a management team to ensure that all of the foundation’s needs are met. In short, you’re starting a philanthropic business, in a way. If you don’t have the time or money to establish a family foundation, it might not be the best way to donate.
In order to read the full article, written by Robert Vowler, make sure to click the link.
