Now that it’s the holiday season, gifts are probably on your mind – and you might intend for some of those gifts to go to charities. Although your intentions are good, you could be shortchanging both your recipients and yourself with your method of giving. But with some guidance, you can make choices that work well for you and those charitable groups you support.
Of course, you could simply give money to these groups. However, by donating other types of assets, can you increase the value of your gift and gain greater tax benefits, too?
It’s certainly possible, but your ability to gain any tax advantages depends somewhat on whether or not you can itemize deductions on your tax return. Due to legislation passed a few years ago that significantly increased the standard deduction, many people may no longer be itemizing. But if you still itemize, you can generally deduct up to 60% of your adjusted gross income for cash donations to IRS-qualified charities.
