As the holiday season quickly approaches, giving is on the top of many peoples’ list. After finding the perfect gifts for your family and friends don’t forget to support your favorite cause.
Charitable giving generally increases in December as people prepare for the year end. This can make a huge difference during tax season, when you can receive deductions based on your charitable contributions. As you wrap up your holiday shopping, and begin to look for other ways to give back, keep these things in mind:
Choose a cause you care about
It’s important to choose carefully when donating to charities. As a donor you should take into consideration the type of organization you want to support, the organization’s history with financial stewardship and organizational success. Keeping these things in mind will help you choose a charity that will use your gift to make a lasting impact.
Monetary gifts go a long way
Giving a monetary gift to an organization without receiving anything in return is the simplest form of charitable giving. Donating property can also fall into the same category. It’s important to keep a bank record showing the name of the charitable organization and the date and amount of the contribution when making this type of donation. You will need those records to claim your charitable giving deductions during tax season.
Money isn’t the only thing you can give
If you’re unable to donate a monetary gift, you may still be able to do some year-end charitable giving. In-kind donations are donations of goods rather than cash. Donation of services can also be considered in-kind, but that type of giving is not tax-deductible.
Each time you donate any type of goods to an organization, like used clothes or furniture you can write off the fair market value of your donation. The fair market value is the price your donation would sell for in the open market. In-kind gifts allow organizations to provide resources for the causes they serve.
Remember, any charitable contributions you make for the upcoming tax year must be complete by December 31. Give back and don’t miss out on your chance to help others and save a little as well.