Rethinking charitable giving
It's time to update the way you give to charity.
Americans are as charitable as they've ever been, according to the Chronicle of Philanthropy. Last year they donated some $62.7 billion to the largest U.S. charities -- matching the highest year-over-year percentage gain in gifts since the publication started tracking those numbers 16 years ago.
But donors are different than they used to be.
The idea of just writing one check to United Way is far less popular than it once was. So is the idea of sending dozens of small checks of $15 for every group's appeal that arrives in your mailbox. The Bill & Melinda Gates Foundation -- created by the Microsoft chairman and his family to help reduce inequities around the world -- has inspired many to start planning their donations the way they plan their retirements.
At the same time, Congress used this year's pension legislation to tighten up the tax rules governing charitable gifts.
Starting in 2007, the Internal Revenue Service will not allow write-offs for cash donations unless they are documented. Instead of tossing cash into that Salvation Army bucket, you'll have to write a check. And remember to save your checking account statement, since your bank probably isn't sending back your canceled checks anymore.
Here's what you can do now to make sure your donations (and your tax deductions) work the way you want them to.
-- Give now, choose later with a charitable gift fund run by a mutual fund company or broker. It's significant that the Fidelity Charitable Gift Fund (www.charitablegift.org/) was the sixth-biggest donation-getter in 2005, according to the Chronicle's figures.
Americans are as charitable as they've ever been, according to the Chronicle of Philanthropy. Last year they donated some $62.7 billion to the largest U.S. charities -- matching the highest year-over-year percentage gain in gifts since the publication started tracking those numbers 16 years ago.
But donors are different than they used to be.
The idea of just writing one check to United Way is far less popular than it once was. So is the idea of sending dozens of small checks of $15 for every group's appeal that arrives in your mailbox. The Bill & Melinda Gates Foundation -- created by the Microsoft chairman and his family to help reduce inequities around the world -- has inspired many to start planning their donations the way they plan their retirements.
At the same time, Congress used this year's pension legislation to tighten up the tax rules governing charitable gifts.
Starting in 2007, the Internal Revenue Service will not allow write-offs for cash donations unless they are documented. Instead of tossing cash into that Salvation Army bucket, you'll have to write a check. And remember to save your checking account statement, since your bank probably isn't sending back your canceled checks anymore.
Here's what you can do now to make sure your donations (and your tax deductions) work the way you want them to.
-- Give now, choose later with a charitable gift fund run by a mutual fund company or broker. It's significant that the Fidelity Charitable Gift Fund (www.charitablegift.org/) was the sixth-biggest donation-getter in 2005, according to the Chronicle's figures.
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