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05.23.19

Charitable giving

BY Masha Rabkin,Sarah Roscioli,Elena N. O'Leary

There are numerous ways you can choose to benefit a charity. Writing a check. Donating an item in-kind. Making a bequest. Establishing a charitable entity. As you determine what charity or charities you would like to benefit, here are a few options as to how you might achieve your goals.

Giving items in-kind

Whether you are simply cleaning out a loved one’s house, your own closet or planning for an item of interest to you but not your loved ones, you have several options available.

Donating a vehicle to charity
Estate planning for your wine cellar
Handling a woodworker’s tools and equipment after death
What to do with unwanted household items

Giving from retirement assets

The IRS allows taxpayers to donate required IRA distributions to charity during their lifetime as well as to designate a charity as the beneficiary of the balance in an IRA upon the IRA owner’s death.

Giving your required IRA distributions to charity

Giving through an estate plan

For generations, charities have benefited under the terms of estate plans. Some give an outright donation. Some establish a trust for the charity’s benefit.

Specific bequest in a will or trust
Charitable trust option for concentrated equity positions
Valuation of interests in early termination of CRUT

Giving through funds and foundations

Charitable giving of vehicles can be an important financial tool for gift, estate and income tax planning.

Donor advised funds and private foundations

Charitable deductions

Whether the decision to make a donation to a charity is out of the goodness of one’s heart or motivated by tax deduction, the donation must meet the IRS regulations to qualify for tax deduction purposes.

Deducting your charitable donations
Substantiating and reporting charitable contributions
Deducting charity-related travel expenses

Tags: Domestic