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, it’s what you do after is the hard part.”
Personally, I like monies to go to things in Hawaii especially when a lot of our investing dollars goes outside the state (secondary/tertiary markets). It is only right.
Our Past Charities
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.
Here is a list of ways to get deductions while helping others:
- 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.
- If you serve in a charity, you can deduct all of the expenses associated with your service.
- 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.
- 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.
- 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.