e-Newsletter Archive
Be Rewarded for Opening up a Charitable Gift Fund
If you are considering on giving a donation to a charity this year, consider opening up a charitable gift fund. A charitable gift fund offers several more benefits that are not possible if you donate to a charity directly. Some of the benefits of opening up a charitable gift fund are that it is tax-smart, strategic, convenient, efficient, and it allows you the choice of whether or not you want your contributions to be private in regards to the public knowing. These advantages are the make up of what makes a charitable gift fund more attractive than donating to a charity directly.
As you know, if you donate a pool of assets to a charity organization, you get a tax deduction. Well, if you open a charitable gift account you get the same tax deduction, but you might be able to get larger tax deduction if the charity organization is public and if you donate to this charity through a charitable gift fund. This is a great benefit and a good way to limit the amount of taxes that you would otherwise owe the government.
Additionally, another advantage to donating to a charity through a charitable gift fund is that you can donate to the organization of your choice. You are not limited to a select group of charities who you must donate the money to. In addition, you can time your contributions so that these organizations receive your donation when you want them to. This is of great benefit and it allows you the decision of making the donation when you feel it’s most appropriate.
Charitable gift funds also take care of all the paperwork for you. By opening up a charitable gift fund you do not need to keep track of your contributions, the investment house keeps track of the contributions on your behalf. At the end of the year the investment house then sends you a single tax form. This form makes taxes easy for you to keep track of your contributions and eliminates a lot of the leg work that you would be required to do yourself for each contribution.
The final benefit of a charitable gift fund is that you can create a legacy. You generally have the choice of passing the fund on to the individual of your choice. This can be a family member who makes the contributions in your family’s name. This could create a family legacy of generosity.
In conclusion, opening up a charitable gift fund offers several key benefits that you would not get otherwise if you had donated to a charity directly. In addition opening up a charitable gift fund is tax-smart, convenient, and efficient. For all these reasons, if you are considering on making a donation to a charity organization, consider opening up a charitable gift fund.