For many people it just feels good to give back, and the end of the calendar year is a good time to do it. You still have a little time to squeeze in those charitable donations.
And financially, there are tax benefits as well. “The end of the year is always a busy time for giving,” says Alison Metiva. She’s the Chief Operating Officer with the “These last couple of days of the year are a great time to still make a charitable donation, if that’s something that you are interested in or have a tax reason to do.”
Those year-end contributions to charity and nonprofits are oftentimes tax-deductible.
“It’s a great time of year to give to charity. So for clients who are charitably inclined, a lot of people will utilize the strategy to help them with their taxes,” Peter Braden, a Financial Advisor with in Traverse City, said.
Some people choose a specific charity, while others donate to a larger group like their local United Way or a community foundation.
“We do see a lot of activity with charitable donations this time of year. We’ve been seeing a lot of giving to what we call our Areas of Greatest need fund. So it’s a really flexible fund that you contribute to. And then we’re able to use that in creative and varied ways to meet needs across the region,” Metiva says. “We see a good mix of donor partners having interests in very specific things that they want to give to. And then also just generally wanting to support the community and the region and Areas of Greatest need across the region.”
Those larger organizations can help target your donation where there is the most need right in your own community.
“We have the opportunity to just see generosity in all shapes and sizes. Hundreds of donor partners from across the region contribute, and then we’re able to reinvest that back into the community through grants and scholarships,” Metiva says.
And donations of any amount can make a difference. “The really beautiful thing about the community foundation model is that gifts of all sizes make a difference. So whether you’re making a contribution of $25, $2500, $25,000, it all contributes to having really significant impact across the five county region,” she says.
“It’s a really cool thing to see how invested the people who are here are, in improving the people in the places of our region,” Metiva says.
And Braden adds, “You certainly need to consult with your financial or tax professional before acting on anything here. But a contribution to a charity is a tax benefit, and if you’re 72 and a half or older, there’s an additional taxable benefit regarding Required Minimum Distributions.”
According to the IRS, . Generally, you may deduct up to 50% of your adjusted gross income, but 20% and 30% limitations apply in some cases.
And you still have time to make that charitable gift.
Metiva says, “The best thing to do at this stage in the game is do an online donation with a credit card or make sure you get your check in the mail and postmarked no later than December 31st.”