Different Types of Charitable Donations

As the second half of the year is steadily coming to an end, you might be thinking of ways to make a difference. Charitable donations is a great approach that is chosen by many people in support of a good cause. From a financial point of view, charitable donations can be a key part of your financial, tax, and estate planning. In case you find yourself not sure what kind of charitable donations might work best for your philanthropic goals, here are some of the ways you can give.

Cash

This is the simplest and most common form of charitable donation. Cash donations help keep most nonprofit organisations afloat during the rest of the year. Most people prefer cash donations because gifting a charity organisation with cash is quite simple. This is mainly because there are no benefits or deductions to handle.

Real estate

Giving away property as charitable donations is a good option especially if you would have been required to pay a large tax upon sale to the property. However, if you still reside in the property but you intend to give it to charity, you can organise for it to become a charity donation once you die. This can be done by transferring the deed to your property to the charity of your choice.

Stocks

Giving away your long term appreciated securities to charity is a very tax efficient way. Such securities include stocks. The upside of giving your stocks as charitable donations is that the more they appreciate the bigger your tax savings will be. This is because once you’ve stopped selling your stocks, you will not incur any capital gains taxes.

As you consider the different ways of fitting your charitable donations into your financial plan, you might want to get the help of a financial advisor.