Win-Win For Charitable Giving

Did you know that Americans donated an estimated $449.64 billion to charities and other nonprofits in 2019? According to the finding from Giving USA, this was one of the greatest years ever recorded in terms of charitable donations (since its first report was published over 60 years ago).

Americans give to charity for two main reasons: to support a cause or organization that they care about or to leave a legacy through their support.

When giving to charitable organizations, some people elect to support through cash donations. However, your generous support may allow for tax benefits. These techniques can maximize both the gift and the potential tax benefit:

Direct gifts are just that: contributions made directly to charitable organizations. Direct gifts may be deductible from income taxes, depending on your individual situation. Don’t forget to save the receipt!

Charitable gift annuities are not related to annuities offered by insurance companies. Under this arrangement, the donor gives money, securities, or real estate, and in return, the charitable organization agrees to pay the donor a fixed income. Upon the death of the donor, the assets pass to the charitable organization. Charitable gift annuities enable donors to receive consistent income, and potentially, manage their taxes.

Pooled-income funds pool contributions from various donors into a fund, which is invested by the charitable organization. Income from the fund is distributed to the donors, according to their share of the fund. Pooled-income funds can enable donors to receive income, manage their tax burden, and make a future gift to charity.

Gifts in trust enable donors to contribute to a charity and leave assets to beneficiaries. Generally, these irrevocable trusts take one of two forms. With a charitable remainder trust, the donor can receive lifetime income from the assets in the trust, which is then passed to the charity when the donor dies; in the case of a charitable lead trust, the charity receives the income from the assets in the trust, which passes to the donor’s beneficiaries when the donor dies.

Using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional who is familiar with these rules and regulations.

Donor-advised funds are funds administered by a charity that a donor can make irrevocable contributions to. This gift may have tax considerations, which is another benefit. The donor also can recommend that the fund make distributions to qualified charitable organizations.

Some people are comfortable with their current gifting strategies. Many people don’t realize how large their “tax problem” is until faced with the numbers. If you’re among those that want a more advanced strategy to maximize the gift and generate potential tax benefits, let’s chat. At RGA, we solve tax problems every day with a holistic approach. This planning style not only saves tens or hundreds of thousands in taxes but can also generate a lifetime income and cover healthcare costs. To learn more, click the link below, call 1-800-467-8152, or email


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