Charitable giving can be a very valuable part of your estate plan. There are thousands of charities out there that could use a boost, but if you’re wise you will do your research before making any knee-jerk decisions.
If you’re like most people you want your money to do the maximum amount of good. You may be drawn to a particular cause or institution for one reason or another, but you don’t know if this entity is efficiently using its resources unless you do the research.
Charities have varying levels of financial accountability and transparency. You may want to give to charities that are lean and mean, those that utilizes a small percentage of funding to pay for overhead and salaried executives.
The website CharityNavigator.org is well worth a visit if you are considering giving to a charity or charities. You can examine thousands of different charities and find out pertinent facts that can help you make informed decisions.
Once you know the charities that appeal to you after digesting relevant information you have to decide on a vehicle of charitable giving. Some people start private foundations, and this may be an option for you even if you are not a billionaire.
Donor advised funds are also widely utilized. These funds enable efficient giving as you make just a single contribution but you advise the fund to utilize your contribution to endow grants to multiple different charities.
If you have questions about the tax advantages that you can gain by giving to charities give us a call at (405) 843-6100 in Oklahoma City or (913) 385-9400 in the Overland Park, Kansas area to schedule a free consultation.
Parman & Easterday