It’s Time to Give More to Charity

Since the GOP tax plan appears to be heading straight for the president’s desk, you might want to consider increasing your generosity in the final stretch of 2017. Aside from the general spirit of holiday giving, donating before the end of the year can make good financial sense as well.

This is because with the standard deduction nearly doubling next year, from $ 6,350 to $ 12,000 for singles and $ 12,700 to $ 24,000 for couples, it may no longer make sense for you to list your taxes and benefit. from the charitable deduction (the number of donors who donate their taxes are expected to fall from 46 million to 13 million, according to a report by the Center for Tax Policy ). Plus, if your tax rate goes down, your donation technically becomes more “valuable”.

With that in mind, it may make sense for you to donate more money or goods to charity than you originally planned by December 31st, if you can. To be eligible for spending, you must make a donation to a qualified organization ( search for which can be found here ). The IRS has more advice here.

You can also use a donor-recommended fund, which allows you to distribute your funds over a specified period of time, while subtracting the full amount that year. You can set up one of these funds with a brokerage company (such as Fidelity or Schwab) and deposit cash, securities, or securities, which are then invested. The IRS also has rules for these funds .

As the New York Times notes, this also applies to other expenses you can list, such as mortgages and student loans (pay more if possible).

Where to donate

But you don’t have to donate more just to get the tax credit. There are tons of organizations and nonprofits that are doing a good job, and the need will only grow: according to the TPC, fewer article writers and fewer people facing inheritance taxes will result in fewer charitable donations following the signing of the GOP tax plan.

People in Houston , Napa and Puerto Rico are still recovering from devastating natural events and need your help. Here are a few more charities that Lifehacker has offered in the past.


Leave a Reply