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Maximizing Impact: What to Know About Year-End Charitable Giving

As the year draws to a close, many individuals and organizations consider making charitable contributions to support causes close to their hearts. Year-end charitable giving not only allows for the spirit of generosity during the holiday season but also provides individuals with opportunities to maximize their impact while potentially enjoying tax benefits. This explores key considerations and tips for making the most of your year-end charitable giving.

Plan Ahead:

Before the holiday rush sets in, take the time to plan your charitable giving. Identify the causes that resonate with you and align with your values. Consider creating a budget for your charitable contributions to ensure that you can support multiple causes or organizations.

Research and Evaluate:

Not all charitable organizations are created equal. Conduct thorough research to identify reputable and effective charities. Websites like Charity Navigator, Guidestar, and GiveWell provide valuable insights into an organization’s financial health, transparency, and impact. Look for charities that allocate a significant portion of their budget to programs and demonstrate measurable results.

Explore Matching Gifts:

Many employers offer matching gift programs, where they match their employees’ charitable contributions. Check with your employer to see if they have such a program in place. This can significantly increase the impact of your donation without any additional cost to you.

Consider Donor-Advised Funds:

Donor-advised funds (DAFs) are a popular vehicle for charitable giving. By contributing to a DAF, you can receive an immediate tax deduction while retaining the ability to recommend grants to your favorite charities over time. This allows you to consolidate your giving, streamline administrative tasks, and potentially grow your charitable funds.

Review Tax Implications:

Understanding the tax implications of your charitable contributions is crucial. The tax benefits associated with charitable giving can vary depending on your country and its tax laws. In the United States, for example, itemizing deductions may be necessary to claim a tax deduction for charitable contributions. Consult with a tax professional to ensure you maximize your tax benefits while staying compliant with relevant regulations.

Explore Non-Cash Donations:

Consider donating appreciated securities, real estate, or other non-cash assets instead of cash. This can be a tax-efficient way to support your chosen charity while potentially offering you additional tax benefits, such as avoiding capital gains taxes on appreciated assets.

Check Deadlines:

Be mindful of deadlines for year-end contributions, especially if you want to claim a deduction on your current year’s taxes. Charitable organizations may have specific guidelines for receiving donations before the end of the fiscal year, so check with them directly.

Engage in Year-Round Giving:

While year-end giving is significant, charitable organizations need support throughout the year. Consider spreading your contributions evenly or setting up recurring donations to provide sustained support to the causes you care about.

Year-end charitable giving is a powerful way to make a positive impact on the world and support the causes that matter most to you. By planning ahead, researching effectively, and exploring various giving strategies, you can ensure that your contributions are meaningful and aligned with your values. Whether you choose to support local charities, international organizations, or a mix of both, your generosity can make a difference in the lives of those in need.

This year if you choose to make a gift to MJHS Health System, your donation will support patients and families in our care who are facing the end of life. Also as meaningful, a grateful family member has offered to double all donations through 12/31/2023.