Year-end Tax Planning with Charitable Giving

November 5th, 2010

Year-end Tax Planning with Charitable Giving
by Richard Karlen, MBA ChFC, CLU, CASL, Pres. Millenium Financial Services

Charitable giving provides an opportunity for tax savings, particularly as you seek year-end planning options for your 2010 tax bill. The amount of tax savings depends on your tax bracket and other factors. However, making a charitable gift is more than just careful year-end tax planning; it is also an opportunity to make a difference in your community through philanthropy. As the year draws to a close, now is the time to think about making year-end charitable contributions. Year-end charitable gifting options include gifts of cash, gifts of stock, gifts of real estate, annuities and life insurance.
If you are considering a charitable contribution, you should consult your tax and financial advisor, as well as the nonprofit organization to discuss charitable giving options. Many nonprofit organizations have gift acceptance policies to ensure that your donation will be properly accepted and accounted so that your deduction will be valid.
Charitable giving is essential in long-term financial planning and wealth transfer strategy. The advantages of philanthropic financial planning are significant for donors, and include tax efficiency, asset diversification, and retention of tax dollars. However, the most significant advantage is the building of philanthropic capital and improving the common good.