Charitable Giving Can Benefit Others and Yourself, When the Proper Plan Is in Place


Charitable giving can benefit others while offering you some tax advantages if planned correctly.

“Whatever gifting strategy you choose, planned giving can be very rewarding. It’s wonderful to see your gift at work and to receive tax benefits as well,” says Fred Hubler, Jr. MBA CWS, president and chief wealth strategist of Creative Capital Wealth Management Group in Valley Forge.

For tax benefits, you’ll need to donate to qualified tax-exempt charity organizations.

Fred Hubler

Stay away from politically active groups if you want a tax deduction.

But feel free to give to religious, charitable, scientific, and educational organizations, as well as veterans’ posts, some fraternal orders, volunteer fire companies, and civil defense organizations.

The amount of your deduction will be determined by how you donate and by the organization receiving it.

An outright gift could mean an immediate deduction equal to the entire value of your gift, up to certain limits.

Avoid capital gains taxes by donating highly appreciated assets like stocks during your lifetime.

Naming a charity as owner and beneficiary of a life insurance policy can give you a tax deduction for the premium you pay.

Other options include setting up a charitable lead or charitable remainder trust, with the income from the trust donated to charity.

A properly planned gift could benefit the charity, you, and your heirs. It could realign your investment portfolio, diversify your holdings, increase cash flow and help leave a legacy.

Learn more about Creative Capital Wealth Management Group’s no conflict of interest, retainer-based financial advice model here.