There are many ways to give to charity. The chart below can help you decide which one is right for you. For more specific advice on how to meet your personal charitable giving goals, talk to your advisor.
Organizations you can support
IRS-qualified public charities
Many organizations and individuals, as long as the grant is made for a charitable purpose
IRS-qualified public charities and, generally, private foundations
Donations of non-cash items
Free online setup
*Cash/debit/check is free, but credit cards and many online fundraising intermediaries charge fees.
Income tax deduction*
*Percentage of adjusted gross income (AGI)
60% for cash
30% for appreciated assets*
*Appreciated assets held for over a year are generally deductible at Fair market Value (this applies to both publicly and non-publicly traded assets)
30% for cash
20% for appreciated assets*
*Appreciated, publicly traded assets held for over a year are generally deductible at fair market value, while non-publicly traded assets are generally deductible at the lesser of FMV or basis
Depends on the type of charity supported by the trust and the type of trust
60% to qualifying charities*
*When donating to a public charity. 30% when donating to a private foundation.
Tax on investment income
1.39% of net investment income
Depends on the nature of the trust
Option to support charities anonymously
Ability to name successors
Consider this when
You want a turnkey giving solution with low costs and the potential to grow tax-free over time.
You want to operate a charitable organization and potentially employ a staff, hire investment managers, actively manage grant-making, and sponsor charitable events.
You want a trust that can generate income for, and eventually pass on a remainder interest to, heirs and charities.
You want to make one-off donations and manage your own donation receipts at tax time.