It can be overwhelming to pick a few worthy causes out of so many available. The task of deciding who or what organizations to support is only the first step; you want to make sure that your money and time are going to have a great impact.
Here are some tips about how to give back in your community while being mindful of the financial implications.
Understand what matters to you
The holidays are a time of joy and giving. With Christmas and New Year around the corner, you may be thinking of ways to make a difference through charitable giving. Whether you’re looking to make a one-time donation or set up an annual giving plan, here are three tips to help maximize your charitable impact and save on taxes.
1. Get organized. Before making any donations, it’s important to get organized. Take some time to research the charities you’d like to support and decide which ones align with your values. It’s also important to consider their financial stability, as well as the impact of their work. Then, decide on the amount you’d like to give to each charity. You may also want to create a budget for your donations so that you can stay on track.
2. Make use of tax deductions. Charitable giving can be a great way to reduce your taxable income while supporting a cause you care about. Donations to qualified organizations are tax deductible, so keep a record of each one and make sure to include them in your tax return. Be sure to check with your accountant or tax advisor for more information on how much you can deduct.
3. Give strategically. Once you’ve decided on which charities to support, think about when and how you want to give. Consider taking advantage of employer matching programs, or setting up automatic recurring payments to save time and ensure that you don’t miss out on any donations. You can also donate stocks or other investments for an added tax benefit.
You can also give by volunteering
The holiday season is a great time to give back to the community. For those looking for an alternative to donating money, volunteering can be a great way to make a difference. Volunteering can be a more impactful form of giving than simply donating money, as it involves a personal connection and dedication that can often reach further and have a longer lasting effect.
Whether it's through Christmas drives, holiday meal donations or volunteering at shelters, the holidays are the perfect time to take a break from the hustle and bustle of gift giving and get involved in charitable activities. Taking the time to volunteer your time and resources can help to spread holiday cheer and make a significant impact on the lives of those less fortunate.
In addition to volunteering during the holidays, there are plenty of ways to keep up your volunteering efforts in the New Year. Donating your time and energy to a cause that is close to your heart can be incredibly rewarding and can have a lasting impact on the lives of those you serve. Whether it’s helping out at a soup kitchen or teaching children in need, there are many opportunities to make a difference even after the holidays end.
Volunteering is an invaluable way to give back, and it doesn’t take much to make a big impact. The holidays are an especially good time to give back, and starting the New Year with a commitment to service can set the tone for the rest of the year. So this holiday season, consider taking a break from buying presents and put your money into something even more meaningful – your own volunteering efforts.
Finally
By following these simple tips, you can maximize your charitable impact and save on taxes this holiday season. With a little bit of planning, you can make sure your generous donations make a lasting difference in the lives of those in need.
