Resolution 5: Share Your Wealth Part of your financial plan should always include philanthropy. When you look around and see all that you've got, the natural impulse is to spread the bounty to improve the lives of others. Here's how to make the most of your generosity:
Make informed donations. Few things can choke off charitable urges faster than the realization your money was spent on advertising and office salaries.
Consult the Philanthropic Advisory Service, a program of the Council of Better Business Bureaus' Foundation, for impartial information about any charity that solicits donations by mail or phone. The service allows you to check if people have lodged complaints about the organization or if it meets 23 voluntary standards set by the CBBB.
Think local. Donating to an organization in your area allows you to see the difference that your donation makes. Check out CharityAmerica, which allows you to pinpoint nonprofit organizations in your area.
Make a stock donation. Giving organizations the choice of a gift of stock has benefits for both you and the charity. Here's how it works:
If you own a stock that's appreciated from $1,000 to $2,000 over the past several years, selling it and giving the proceeds to charity will leave you with a capital gains tax bill. If you give the stock directly, however, you can still take the $2,000 charitable deduction, you don't get stuck with a tax bill and the nonprofit organization won't pay any taxes on the sale of the stock either, because it's tax-exempt.
Don't limit yourself to cash or stock donations. By logging onto the Internet, you'll find hundreds of sites devoted to charitable giving.
