Whether you’re considering ways to give to deserving causes or looking for the perfect gift for a loved one for a special occasion, remember that not every gift is a tangible item. In fact, some of the best gifts are those you can’t touch at all, but those that make the world a better place. Consider these giving options to make a lasting impact.
Make a Lasting Difference
(Family Features) Whether you’re considering ways to give to deserving causes or looking for the perfect gift for a loved one for a special occasion, remember that not every gift is a tangible item. In fact, some of the best gifts are those you can’t touch at all, but those that make the world a better place.
Socially motivated gifts, of your own accord or on behalf of someone else, are much more than a one-time present. They have the potential to make a significant impact on lives or to further the work of a cause-based organization.
Consider these giving options to make a lasting impact:
Retirement plans: Because retirement plans are taxed differently than most assets, they may actually become a tax liability. Naming a nonprofit organization as a beneficiary of your retirement account can be an attractive option for leaving a legacy and reducing income, and possibly estate taxes, for loved ones. A tax-exempt organization may be eligible to receive the full amount, bypassing income taxes. This means, for example, that a $100,000 IRA can be worth the full $100,000.
Life insurance plans: A gift of life insurance is an affordable way to make a significant gift while also enjoying tax savings during your lifetime. Benefits include the ability to give a significant gift at a fraction of the value; tax savings that can be immediately realized; a reduction in the final taxes of your estate and the ability to pass gifts outside of your estate.
Gifts of real estate: You may decide that the greatest gift you can make is to leave your home or other property to a charitable organization. This kind of gift is ideal for someone who intends to continue living in his or her home or property through their lifetime, but still make a charitable gift. You can leave this generous gift by signing an agreement with an organization about maintaining the property so you can use it throughout your lifetime. You may even receive a tax deduction for your gift.
Gifts of stock: Stocks, bonds and mutual funds that have appreciated in value are among the best ways to gift a nonprofit organization. You may receive a charitable income tax deduction for the full market value of the stock (up to a maximum of 30 percent of your adjusted gross income) and avoid paying the capital gains tax on any increase in the value of the stock.
Gifts of cash: This type of gift is simple and eligible for an immediate charitable tax credit. Although many organizations allow you to specify how you would like the funds to be used, an unrestricted monetary donation allows the organization to allocate your contribution into the project or area that needs funds most.
If you designate a gift on someone’s behalf, be sure to share a card or a note with the honoree letting them know about the contribution. Particularly if it’s a cause close to the heart, it’s sure to be just as gratefully received, if not more so, as any trinket you might buy.
Find more ideas for gifts that make a lasting difference at eLivingToday.com.
4 Ways to Make an Impact on Children
When looking for opportunities to make an impact on the lives of others, selecting a cause to support can be an overwhelming task with so many options to choose from. However, considering opportunities that can change the lives of kids is one way to make a lasting impact for generations to come.
Helping children early on can change the trajectory of their lives, set them up for success and empower them to achieve their dreams. This is especially important for kids living in poverty who are not guaranteed access to things like medical care and quality educations. According to global humanitarian organization Children International, nearly half the world lives on less than $2.50 a day and 1 in 5 kids in the United States lives in poverty.
Consider these ideas to make an impact on children in need now and well into the future:
Become a mentor or coach. A positive role model can make a life-changing difference for a child from disadvantaged circumstances. As a mentor or a coach, you can help children explore and nurture their unique talents and guide them toward a successful future.
Volunteer at a local school. Families increasingly rely on two incomes to support their households, which means parents are less available to lend their time to their children’s classrooms or schools. At the same time, public school funding is shrinking. As a volunteer, you can help fill these gaps and contribute to bettering the learning opportunities for children in your community.
Sponsor a child. You may be surprised to learn how far a monetary donation can go. For example, Children International supporters can join a monthly giving program and sponsor a child in poverty for $32 per month. Your donation establishes a connection with an individual child who receives access to life-changing benefits like medical care, educational support and life-skills training. The institution is a CharityWatch top-rated organization that serves 250,000 children in 10 countries. If a reoccurring donation is not right for you, the organization also accepts one-time donations. Learn more at children.org.
Donate new or used items. Service organizations such as shelters generally operate on tight budgets and rely on contributions from the community. Gently used items in good condition such as children’s clothing of all sizes and warm bedding are generally welcome.
Photo courtesy of Getty Images (Young boy and Grandmother)SOURCE:
(BPT) - Come tax time, many people work to locate tax breaks. While this is always a smart financial move, a little-known way to help build your net worth is to keep taxes top of mind throughout the entire year.
Reducing taxes means you keep more of what you earn, according to Nick Holeman, a financial planning expert at Betterment.com.
"You can't control the stock market, but you can control some of your taxes," Holeman said. "Knowing how your investments affect your tax bill can help you save money not just on April 15th, but for years to come."
Check to see whether your long-term investment strategy is running efficiently with these tips from Holeman.
Invest your tax refund: One smart place to invest your tax refund is in an IRA. Normally, investors might divert a portion of the refund into this account as part of a well-rounded investment strategy and claim the deductions for next year's tax time. Invest your refund, and you may get a portion of that back in tax savings. Stay in the habit of investing that refund if you can and watch those small returns add up over time.
Think several moves ahead: Investing is complex and from time to time you will have to sell some of your investments; everybody does. It might be to rebalance your portfolio or maybe your goals have changed and your investments no longer match their intended purpose.
Still, smart investors need to think ahead before blindly selling parts of their portfolio. This is because selling could potentially lead to taxes. By carefully choosing which investments to sell, you can help minimize that hefty tax consequence.
One way to do this is to partner with an investment company that has the tools to make this information easy to access and understand. Betterment.com, for example, offers Tax Impact Preview, which lets investors see estimated potential tax on a sale before making the trade. If you don't think the pros outweigh the cons, don't do it.
Reorganize your investments: Another way to potentially leverage even small tax advantages into long-term growth is to build your portfolio like an energy-efficient engine, built to run for more miles with less need to refuel. You can help accomplish this by reorganizing your portfolio. Move inefficient investments like international stocks and other assets that are taxed more often into a tax-deferred account, such as an IRA or a Roth IRA. That way, you can enjoy the high growth for less tax. Then, move less-taxed assets, such as municipal bonds, into taxable accounts.
Benefit from losses: Help keep your portfolio in balance by selling off the laggards and replacing them with a similar investment. You can receive a tax deduction from your losses that can help cancel out the taxes you owe on assets that have gains. This is done automatically for investors at many automated services through a strategy called tax loss harvesting. Smart investors should always remember that investments involve risk and may result in loss.
Give to a worthy cause: While it's important to secure your future, many investors see community support as an important goal. Consider donating a to a nonprofit organization in your community. Not only are you helping to improve the quality of life in your locale, you can potentially claim a deduction from your income tax. It can pay to do the right thing.
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