Maybe you’re in a position to pitch in and make a difference, but you’re wondering about the best ways to do so.
A smart giving strategy may not only provide greater resources for worthy causes, but also possibly lower your tax bill.
If you’re thinking about your favorite local businesses, your employees, or your community at large, here are a few ways you might make an impact while keeping your own finances streamlined.
Support Your Community
Want to make an immediate impact? Consider leaving a generous tip for your grocery or takeout delivery person, donating to the local food bank, or continuing to extend some support to anyone on your payroll (think landscapers, babysitters and personal assistants) even if their services are on hold.
Pick a Global or Nationwide Cause
Think about the causes close to your heart and look into the best way to support them, be it by sending an online donation or helping them secure the supplies they need. Be sure to keep track of all donations. Also: Avoid fraud and make sure you’re giving to a legitimate organization by doing some research first.
The coronavirus relief bill includes two new tax benefits related to charitable cash donations. For taxpayers who take the standard deduction, a $300 deduction for charitable gifts is now available. For those who itemize deductions, the amount you can deduct for cash donations has been expanded from 60% to 100% of adjusted gross income for 2020. Some caveats apply, so reach out if you’d like to learn more.
Do you have questions or need help creating a plan to maximize your donation’s impact? Get in touch today.