Tags: tax | charity | giving | donate

WSJ: Tax-Savvy Ways to Be Charitable Before Year-End

By    |   Thursday, 26 December 2013 08:32 AM

American's pockets are getting a little bit deeper this year when it comes to charitable giving, as taxable incomes are on the rise and the stock market is booming, The Wall Street Journal reports.

Charitable giving is up 12 percent from the same period last year to nearly $344 billion, Atlas of Giving, a philanthropic forecasting service based in Dallas, estimates, according to The Journal.

For the first time in 13 years, the Nasdaq Composite Index reached 4,000, and the S&P 500 has gained 28.6 percent this year, which puts wealthy investors in a charitable mood.

Editor’s Note:
Obama Donor Banned This Message (Shocking)

Growth in the economy triggers charitable giving, as increases in income, wealth and financial security creates a need to offset taxable income.

This year, the highest income-tax bracket jumped from 35 percent to 39.6 percent and the highest income-tax rate on long-term capital gains and qualified dividends rose from 15 percent to 20 percent. In addition, 3.5 million families could be affected by a new 3.8 percent surtax on net investment income, including dividends, interest and capital gains, according to congressional researchers.

"People are starting to get income-tax projections back from their CPAs, and they're getting walloped. You're certainly seeing more philanthropy," Jonathan Forster, national wealth-management chairman at law firm Greenberg Traurig in McLean, Va., tells The Journal.

Those fortunate enough to give should pay attention to the type of gifting that best suits their situation and weigh out the options with a tax expert or an attorney before making any contributions, The Journal cautions. Investors can consider cash or stock donations, charitable trusts or foundations.

Strategists suggest being savvy with your money and doing your homework.

"There's a lot of marketing of causes and need that's a total rip-off," says Paul Nourigat, a senior wealth strategist for U.S. Bank. "It's really worthwhile for families to do some vetting of charitable causes. You have to find out how much of the donor dollar is getting to the need."

The Wall Street Journal also recommends choosing the vehicle that will provide you with the highest income-tax deduction.

Una Osili of the Indiana University Lilly Family School of Philanthropy tells the Los Angeles Daily News, "Giving tends to increase when the economy is strong and in prosperous economic times."

David Levinson, founder and executive director of Big Sunday, a nonprofit organization, notes that charitable giving has picked up during the last six to 12 months.

"People seem to be feeling better about the economy, and their purse strings have loosened a bit for which I and other persons in my position are very grateful," Levinson notes.

Editor’s Note: Obama Donor Banned This Message (Shocking)

Related Stories:

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Personal-Finance
American's pockets are getting a little bit deeper this year when it comes to charitable giving, as taxable incomes are on the rise and the stock market is booming, The Wall Street Journal reports.
tax,charity,giving,donate
469
2013-32-26
Thursday, 26 December 2013 08:32 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved