Credit is a system whereby a
person who cannot pay gets another person who cannot pay to
guarantee that he can pay.
- Charles Dickens –
donate to charity
Lemons? Make Lemonade! What are the tax benefits of donating to
Collections with Causes?
Through tax legislation, Congress has attempted to encourage
charitable giving because it is good social policy. Almost every
charity depends on individual contributions to remain financially
solvent, especially in this era of fewer direct government dollars. As a
result, charitable giving has become interconnected with the
tax laws, which have grown more and more complex. The fact remains
that your financial benefit may increase dramatically by turning your
financial loss into a benefit for all!
Congress has sweetened the pot for taxpayers who make charitable
donations. First, you generally receive a deduction in the year you
make the gift. Second, you do not have to worry about gift tax because
federal gift tax does not apply to charitable gifts. Third,
charitable gifts serve to reduce your taxable income, thus reducing your
potential tax liability. In this world, we are all faced with financial
loss. Although Congress has increased the benefit for charitable
donation, they have made little progress in the area of capital loss.
The best solution to minimize this loss and reduce your tax liability is
charitable giving through a truly unique and innovative “business tool”,
charitable giving through Collections with Causes.
What constitutes a gift to charity?
A gift to charity is simply a gratuitous transfer of property or assets
to a charitable organization. The key is that your gift must be some
kind of property or an instrument of value. There are several different
types of property that can be donated to charity, a gift need only be
limited by your imagination. What more imaginative way for you and your
business to take advantage of the social and financial benefits of
giving than turning your financial “lemons” into charitable “lemonade”?