Tax Benefits For You, Charity Benefits For Others.

Gifting to charity is a great way to help others and take advantage of tax savings, especially before December is up. There are several ways to gift and get even more tax benefits:

• Donate appreciated securities – no capital gain taxes and a bigger write-off
• Donate stock, bond, mutual fund share  – no capital gain taxes
• Donate from your IRA – If you’re 70 ½ or older and you have yet to take the required minimum distribution on your IRA, you can donate directly from the IRA. This keeps the distribution from being included in your taxable income. Be sure you act by December 15 if you’re going to take advantage of this option.
• Give to a community fund – This will get you a credit on your state taxes.
• Make your donation with a credit card. This way you can have money for the holiday season and still fulfill your charitable intentions.

See Kate Ashford, Get More From Your Donation to Charity, CNN Money, Dec. 8, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.