What if I told you that giving your money away could actually help you keep more of it? Sounds crazy, right? But trust me—as someone who's seen both sides of financial struggle and success, I've discovered that generosity doesn't just change lives; it can transform your financial picture in unexpected ways. When you give strategically, everybody wins: the causes you care about, your tax situation, and your long-term financial wellness.
Q: How can giving to charity help lower my taxes now and in the future?
A: Giving to charity is like getting a "thank you" from the IRS. When you donate, you can deduct that amount from your taxable income, potentially reducing your tax burden. Donating appreciated assets like stocks helps you avoid capital gains taxes. Long-term strategic giving can also lower estate taxes, directing more of your wealth where you want it to go.
Q: Is it better to donate money directly or give things like stocks?
A: While cash donations are valuable, donating stocks that have increased in value creates a dual benefit—you receive a tax deduction and avoid paying capital gains taxes on their growth. This approach maximizes both tax efficiency and charitable impact.
Q: What records do I need to keep for the tax office when I make donations?
Step 1: Keep a receipt for EVERYTHING. Period. Over $250? Get a letter from the charity. Over $500 in stocks or property? You'll need to file an extra tax form. For donations exceeding $5,000, a professional needs to confirm its value.
Q: How can I include charitable giving in my long-term financial plan?
A: Incorporate giving into your financial strategy through donor-advised funds, charitable provisions in your will, or vehicles like Charitable Trusts. These tools allow you to make an impact while securing your financial future.
After overcoming personal financial hardships, Ashley K. Butler now serves as a Cash Flow Strategists at Alpha Omega Wealth. She's dedicated to empowering others through financial education and personalized guidance. Ashley helps clients achieve financial well-being while making meaningful charitable impacts that align with their values and goals. ashleykbutler.com