Charitable contributions can make a big difference within your community and beyond. There are many nonprofit organizations you can support with donations. And when you donate to these organizations, you make it possible for them to help others.
While the main goal of donating to charity is to provide financial support to the organizations you care about, there’s an added benefit to you in the form of tax deductions. Certain donations are tax deductible, which means you can claim the donations to reduce your taxable income for the year. Many people make donating a regular part of their financial plan by mapping out how much they’d like to donate each month as part of their monthly budget.
Strategically donating to charity as part of your retirement plan also has its perks. When you make a qualified donation from a traditional IRA to charity, you’re not required to pay taxes on the distribution.
As you consider your gifts this year, check out these facts about giving to charity.
6 Facts About Giving
- In 2019, total giving to charitable organizations in the U.S. amounted to an estimated $450 billion — and increase of 5.1% since 2018.
- Charitable organizations depend on donations from individuals. In fact, donations received by nonprofit organizations are largely made by individuals. In 2019, individual giving made up 69% of all giving.
- December is the largest giving month of the year.
- Charities sometimes need flexibility in how they use donations. Designating money to a specific project is great, but you should also consider giving without conditions, allowing the organization the flexibility to meet changing needs — including just keeping the lights on.
- Diversification in charitable giving is not as valuable as concentration. While having variety in your retirement portfolio is valuable, spreading your donations thin could actually keep your favorite charity from making a larger impact.
- You can use life insurance to give to charity. Designate your favorite charity as a beneficiary on your life insurance policy* and you can make a larger gift than otherwise possible. Your local Farm Bureau agent can provide more information and make the process simple.
Make Your Donations Go Farther
Whether you’re considering making a one-time contribution or planning to leave a legacy to your favorite charity, your donation can help improve lives. Contact your Farm Bureau wealth management advisor to find out how charitable giving fits into your financial plan.
*State laws and regulations vary regarding charitable ownership of life insurance on an individual. Consult your Farm Bureau Financial Services agent and state regulations.