Each year, many people in New York give back by donating to charities. Whether you’re a first-time or more experienced donor, you can make mistakes during the donation process. Avoiding these mistakes helps ensure you’re doing the most with your assets.
Don’t forget about tax advantages
You can receive a significant tax break depending on the value of what you donate. That’s because of the charitable income tax deduction. Taking advantage of these deductions can drastically minimize how much you have to pay back in taxes. But save your receipts – the IRS may require proof of your donations.
According to the IRS, charitable contributions of over $250 require the donor to list the following:
- The organization’s name
- Total contribution amount or a description of non-cash donations
- A statement agreeing that the organization you donated to didn’t provide you with what you contributed.
Money isn’t the only way to donate
Many people commit to charitable giving by donating money. For instance, Donorbox estimates charitable giving to reach over $100 billion in 2022. However, that’s not the only way to support your favorite charitable organization. You can also typically donate stocks, vehicles, or properties to charities.
Certain charities accept volunteers
Giving money or assets to charities are great ways to support these organizations. However, some charities also accept help through volunteer work. For example, Habitat for Humanity is an organization that allows people to donate their time and energy by constructing homes.
After you select a charity to donate to, consider involving friends or family members in your chosen cause. Donating to charities also allows you to network with groups of like-minded people.