Giving to Charity

The IRS wants you to give to charity and they give you a tax deduction on your takes to lower your Adjusted Gross Income (AGI).

The deduction makes sense, by giving to a non-profit its one less dollar the Government needs to support that group or cause.

But many of us at SPC like control over their dollars and want to make a positive impact. As we say here “The Passive Cashflow… That’s the easy part, its what you do after is the hard part.”

Our Past Charites

2017 – Relay For Life

2018 – Choose Love

Ways to get a deduction

Make no mistake we are not giving to charity to get a write-off. Plus it’s not cool, you should give because you are passionate about the cause.

Also spending a dollar to save 20-40 cents is not smart… but I hear so many people thinking they should go into a bad Opportunity Fund Zone deal or into a 1031 exchange just to save taxes.

Here is a list of ways to get deductions while helping others:

  1. Donate cash or donate stuff. Keep careful records of what is donated. If you write a check to charity, you can take the amount of that check as an itemized deduction on Schedule A.
  2. If you serve in a charity, you can deduct all of the expenses associated with your service.
  3. Donor Advised Fund – not recommend by myself because you are investing in Wall-Street assets but its an interesting concept. Also look into a Qualified Charitable Distribution.
  4. Private Charitable Foundation – I have this set up in my estate plan for a lot of my funds to go to this foundation that I am yet to set up (this is on my to-do list). Think of the Melinda and Bill Gates foundation.
  5. Charitable Remainder Trust – Don’t have enough to live on today yet (to be able to give away your money) or don’t want to give it to your spoiled kids? Name a few charities to give it to when you die.