Davidson Law Group Shares Important Things to Know About Charitable Giving
Are you looking to donate money to a cause that’s important to you?
From the expert attorneys at Davidson Law Group, here are some things you should know about charitable giving.
Things to Decide
Before you give, it’s important to decide how many organizations will be supported on an ongoing basis. Determine if you want to disperse future donations among several charities or give it all to one. After you outline your personal priorities and goals, select the organization that will receive the donations. Be aware of the tax and legal repercussions when giving to charity.
Related Post: The Tax and Legal Repercussions When Giving to Charity
How Will the Donations be Made?
When it comes to charitable gifts, common methods include a cash gift or writing a check. Other people, however, may choose to donate financial securities such as property or art. Charitable trusts, wills, and private foundations are all viable avenues for making a donation.
It’s simple to claim a charitable deduction for a charity, whether you write a check or donate online with your credit card. Whatever method you use to make your donation, you need a bank record showing the transaction or a receipt displaying the date and amount of your donation. You can also make a donation through a text message. The IRS will accept the phone bill as proof if it shows the charity, the date that’s given, and the amount.
To claim a deduction for a cash gift of $250 or more, you must have a written receipt from the charity that details the gift. For cash gifts of more than $500, or more than $5,000, speak with an estate planning attorney to cover all the bases.
Some typical household items to pass on to charities include appliances, furniture, and clothing. You can claim a tax deduction for these items — just make sure they’re in good condition. When you donate items like books or cars, it requires more documentation and occasionally a special IRS form. To determine the value of your gifts, add the value of all similar items. This standard applies even if you give your items to different charities.
Contact Davidson Law Group Today
Charitable giving is an important element in the estate planning process. Whether you want to set up a charitable trust or just donate a few smaller gifts, the Davidson Law Group can help you develop a plan to meet your goals. Contact us in Fort Worth at (817) 900-6529, in Allen at (972) 591-6603, or in our new Tyler office at (903) 525-6500.