Giving away some of your money is a great way to support the people and organizations you love. But choosing the right strategy is essential for minimizing your taxes and meeting your personal goals.
You make a donation directly via cash or check. It’s the giving strategy most are familiar with.
Similar to cash donations, you can also gift different securities to a charity. Stocks are the most commonly gifted securities.
Funds transfer directly from your individual retirement account (IRA) to a qualifying charity of your choice.
This method allows you to set aside assets in a special account, grow the funds over time, and then grant donations to qualifying charities of your choice at a later date.
This method allows multiple contributors to donate to a special account managed by a nonprofit. The assets can grow over time and pay out dividends to all contributors. After the contributors pass away, the remaining funds go to the managing nonprofit.
Assets in a CLT create income for a charity over the term of the trust. After the term is over or the donor passes away, the remaining assets funnel to non- charitable beneficiaries.
Assets housed in a CRT create income for non- charitable beneficiaries over the term of the trust. After the term is over or the donor passes away, the remaining assets funnel to charity.
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