Financial expert Mark Henry offers advice on making your donations count.
CHARLOTTE, N.C. — As the holiday season is here, many Americans might be looking to give back.
Mark Henry, CEO and founder of Alloy Wealth Management, agreed.
“I get more personally from giving than I ever get from receiving,” Henry explained. “It’s an amazing thing and it’s a gift.”
However, Henry explained charitable giving isn’t just about feeling good. He said it’s also about being strategic.
“We’re a charitable nation and as individuals, we do this because it’s the right thing to do. But it doesn’t mean we shouldn’t get something for giving,” Henry said. “There’s ways to do it.”
For those 70-and-a-half and older, there’s a giving option called qualified charitable distributions, which helps seniors avoid moving into a higher tax bracket.
“That’s those required minimum distributions that you must take,” he said. “You can do it from a charitable contribution from your IRA to the nonprofit that you want to donate it to. And now it doesn’t cause you to pay extra taxation on your social security.”
Whatever the age, Henry said it’s important to choose the right charity.
“Be careful. Some of these organizations aren’t what they pretend to be and you want to know where is the money going. How much of it is going to pay high-dollar CEOs to run the nonprofit and how much is actually going to the people that deserve and need the money so desperately.”
“Donate to something you’re personally passionate about,” Henry advised. “Do your research and make sure the lion’s share of the money gets into the hands of people or causes that truly need it.”
Another giving option is using donor-advised funds, which Henry said to think of as a charitable checkbook.
However, Henry added, “You have to file itemized deductions. Many seniors are not filing itemized deductions.”
He also reminded people who donate goods and money to keep receipts for tax deductions.
And, if money is tight, remember you can always volunteer your time.
