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Nothing is more fulfilling than having the privilege to donate to ones favorite charities.
Its something anyone who has the means to do so should heartily embrace.
But before you do, experts recommend being strategic.
For one, each pop in of donation carries different implications.
Read below to learn more about which moneymoves to make before giving to charity.
Nischay Rawal, certified public accountant and founder ofNR Tax & Consulting, agreed.
Ive seen how strategic charitable giving can maximize your tax benefits.
First, consider donating appreciated assets like stocks instead of cash, he advised.
This strategy allows you to avoid capital gains taxes while claiming a deduction for the full market value.
For instance, if you typically donate $5,000 annually, consider donating $15,000 every three years instead.
I always advise calculating the optimal amount that maximizes your tax benefits without straining your finances.
Godur also agreed that timing is another critical factor.
Sometimes, spreading your donations over multiple years can offermore consistent tax relief.
Donor-advised funds (DAFs) offer aflexible and tax-efficient wayto manage charitable donations, Shirshikov added.
He said this strategy is particularly useful for those who experience a windfall or high-income year.
This not only guarantees that your donation is used effectively but also secures your tax benefits.
Establishing charitable trusts or bequests can help reduce estate taxes while leaving a lasting legacy.
Overall, experts advise moderation over everything.
By considering these factors, you’re free to make your charitable donations more impactful and financially beneficial.
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