Donating cash or securities to a legitimate charity can help you feel more fulfilled while providing help to a cause you are passionate about. Finding a legitimate charity and determining what funds you can allot to the charity can be another challenging task on your to-do list. Our team can help you define your goals and determine what charitable giving contributions are best for your organization.
Define Your Giving Goals
The first step for individuals and businesses who want to give to charity is to define what they want to accomplish. Defining your giving goals, frequency of donations, and the amount you want to give will help you determine an amount and a charity that feels true to you. If you are unsure about how to balance charitable giving and other business investments, working with a financial professional will be beneficial. WW Partners can help you manage your securities, financial gains, and other investments that can help diversify your business.
One Time Or Recurring Donations
Planning your giving in advance can help you balance generosity with your budget so that you remain consistent. How much you give throughout the year, or if you make a large one-time donation, can shape your financial standing. Some businesses or individuals want to give larger donations to a few organizations instead of spreading out donations. Annual contributions can allow these charities to plan programs or outreach with confidence, rather than raising funds on their own or putting their financial standing at risk. Our financial experts can help you manage your contributions to provide help to nonprofit organizations without compromising your financial security.
Types Of Charitable Giving
There are many ways to give to charity, all of which can be beneficial in different situations. Whether you are a business or an individual, choosing the right type of giving will make annual donations easier. Learn more about each type of donation below.
Cash
Monetary donations are the simplest way to make contributions to a charity. By giving a cash donation, you allow the organization to respond to challenges or problems quickly. Instead of providing actual cash, filling out a personal check will make it easier to document for personal tax purposes.
Stocks And Securities
Non-profit organizations accept stocks and bonds as donations. These donations involve giving ownership of your securities to the nonprofit through their brokerage account. You should check with the organization before transferring securities, as there may be requirements or requests on their side to keep the donation above board. Letting the organization know beforehand will allow them to watch their account and provide a receipt.
Planned Giving and Charitable Trusts
Including a donation in your will, as a beneficiary of a life insurance policy, or your retirement plan, is another way to give back to your community. These types of charitable giving opportunities will help you plan for the largest possible amount and give you complete control over how the assets are distributed. You can also consider a charitable lead trust, which involves placing your assets into a trust and can pay annual distributions after a set amount of time or when other requirements are met.
Valuable Assets
A large asset, like a car or a piece of equipment, can be used as your annual donation to a charity. Organizations that help patients attend health appointments, fix home problems, or complete daily tasks may be able to use the asset for their intended purpose, while others may be able to auction it off for cash. You may need to get an expert appraisal to determine the current value of these assets before donating them.
Client-Focused & Results-Driven
Working With WW Partners
WW Partners understands the ins and outs of all things legal, financial, and business. Our experts can help you tackle some of these tasks that many of us put off for too long. Taxes, business filings, or planning for the future can feel daunting, which is where the help from our team comes in. Our legal and financial advisors can help you navigate the Utah requirements and laws to help our clients face the future with confidence. Plan financial donations, business taxes, and protect your assets with the team at WW Partners. Whether you are in Salt Lake City or the surrounding areas, we will be happy to work with you.
Frequently Asked Questions
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How Do I Choose The Right Nonprofit For My Donations?
One of the trickiest parts of making annual donations is choosing where they go. Donations to a nonprofit or charitable organization should align with your priorities and the mission of your business. Research multiple nonprofits and how they utilize private donations to help you find an option that feels right. They may also be able to provide answers to your questions if you reach out before making a donation and share how donations have impacted their work in the past.
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Are All Donations Tax Deductible?
Tax-deductible donations are only counted when made to qualified nonprofits (501(c)(3)). Donations to individuals, political organizations, or personal fundraisers are not tax-deductible.