The Law Office of Paul Black has tips on how to handle your charitable giving. If you need help, give us a call today. We are ready to help.
Charitable Donations and Estate Planning
It’s never too early to start planning for your family’s future.
If you have questions, I’m here to help. There is no commitment and we provide free initial 15-minute phone calls. We look forward to meeting you.
Do you have a large estate? Do you wish to achieve philanthropic goals? Would you like to reduce your taxable income? Incorporating charitable giving into your estate planning may be an excellent idea.
Charitable donations allow you to support a worthwhile cause while reducing your tax liability. However, it should be part of a well-thought-out estate planning strategy to achieve your goals.
You may be contemplating how to plan your estate with an emphasis on tax savings. However, you still want to be efficient and philanthropic. Would you like to learn more about charitable deductions and how they can benefit your estate? Getting in touch with a qualified, experienced, and capable estate planning attorney can help you determine whether charitable contributions will enhance your estate plan.
The Importance of Charitable Giving
Giving to charity is a meaningful way to express our gratitude for the numerous gifts we have received. It is also a compassionate gesture that has the power to transform lives.
Nonprofit organizations rely on our support to carry on this vital work.
Benefits of Charitable Giving
Charitable contributions can be advantageous to both the donor and the recipient.
Some of these benefits include:
- Ensuring that your legacy is continued
- Contributing meaningfully to assist the charities you believe in
- Assisting the charity to reach its goals
- Lowering the amount of your future estate tax liability
Giving to charity can help you reach both your financial and philanthropic objectives if you plan it well.
Different Types of Charities
Three types of charities qualify for charitable giving. These are public charities, private foundations, and privately run foundations.
The IRS mandates public charities to be accountable to the public. This is because they receive government funding. These charities include religious institutions and healthcare facilities. They also include educational institutions, food banks, and housing help agencies.
Public charities seek donations and have lenient operating regulations. They also offer more significant tax deductions to contributors.
A private foundation is a charitable organization that receives funding from a small number of sources. It earns money from investments and gives money to other nonprofits. Public charities are subject to less regulation than foundations. Assets cannot be in jeopardy, and money cannot be utilized for things other than charity causes, including politics.
Individuals and families with a high or ultra-high net worth may create a private foundation as part of a family office.
Private Operating Foundation
Private foundations use their assets to run programs and activities. Libraries, zoos, research centers, and museums are among the examples.
Are These Nonprofit Organization Charities Regulated in Georgia?
Charitable organizations functioning in the state are subject to regulation by the Secretary of State.
Unless exempted by law, all charity organizations may register with the Secretary of State.
It is a good idea to research the charity you intend to donate to before finalizing your donation.
Can I Donate to International Organizations and Receive Tax Benefits?
The IRS prohibits tax deductions for contributions to foreign organizations. An exception is domestically founded international businesses—also, specific international organizations with registered Canadian addresses.