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No. of Recommendations: 4
I donate time and money to the meals on wheels (6 towns) and the local senior center.

https://www.fidelitycharitable.org/guidance/philanthropy/wha...

What is philanthropy?
Greek playwright Aeschylus coined the term philanthropy in the 5th century BCE. It meant “love of humanity.” Today, philanthropy means generosity in all its forms and is often defined as giving gifts of “time, talent and treasure” to help make life better for other people.

You can practice philanthropy by making a monetary gift, such as a donation to a cause you believe in. You can also practice philanthropy by giving your time—serving in a soup kitchen, tutoring a teen or engaging in any other volunteer activity that aims to improve lives. So the answer to “what is a philanthropist” is a person who exhibits these behaviors, regardless of how many resources (or how few) that person has.


I'm trying to do it in both ways.
This volunteering is very rewarding.
It gives back to me both in working with the volunteers (like me) and the a community spirit.

So, do you have stories or other places that we all might give back to?
nag
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No. of Recommendations: 5
As an engineer I’m a sucker for a charity that’s both really helpful and really efficient. I love these guys

https://www.foodbanknorthal.org/

They have a big central warehouse where they buy food wholesale by the semi trailer then distribute it to 133 food pantries as well as taking big donations from local farmers. Feed about 5 people per dollar. Help a lot of people. Tax deductible too. I hate people being hungry so this one fits for me. Feed the kids!
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No. of Recommendations: 1
I’ve been a Red Cross volunteer since I was a teenager. Still am. I donate to them, too — largely through a directed contribution through the United Way at work, but a little independently as well.

I briefly touched on one of my projects with the Cincinnati chapter in this article: https://www.fool.com/investing/general/2009/04/22/you-can-do... .

I’m thrilled to say that even more than 10 years after that building was built, it continues to serve the charity well and cost less to operate than its smaller, less effective predecessor building did.

Regards,
-Chuck
Home Fool
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No. of Recommendations: 1
I try to help support quite a few groups, but my FAVORITE 3 are:

*Alameda County Food Bank
*Plan International ( we have had "foster children" for 51 years.Our most recent child sent a lovely letter with a charming drawing for us this week)
*Habitat for Humanity

Luckily I have a very generous husband so we have never needed to argue about trying to help in this very ordinary way. He has other favorites.
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No. of Recommendations: 17
I think this is an appropriate thread to remind everyone that once you reach 70 and a half you can make charitable donations directly from an IRA, without any taxes. Up to $100k per year, and it does count against any RMA.

https://money.usnews.com/money/retirement/iras/articles/how-...

It does have to be a 501(c)(3) charity.
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No. of Recommendations: 2
I'll echo that as well as to say, I stopped giving $$ to charities about 10 years ago and only give stock. Im not close to 70 so can't give via my IRA.

There is NOTHING more fun that gifting away some AMZN shares that I picked up at $135, and then rebuying them to maintain my position at $3000, and knowing I did good, and just saved a ton on taxes.

The only downside is it makes my % gains look weak in Quicken ;)

Almost all the brokerages make it easy to do this. Schwab has invested a TON in there functionality on this. Literally takes 3 clicks.

Not preaching to the choir, just want to encourage everyone to get the best benefit (after the joy of giving) for their tax return.

Fool on, and Give on!

CFD
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No. of Recommendations: 1
If stepped up basis goes away as some propose, giving away shares -- to avoid large capital gains estate taxes -- could become popular.
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No. of Recommendations: 0
Hi CFD,

Almost all the brokerages make it easy to do this. Schwab has invested a TON in there functionality on this. Literally takes 3 clicks.

It's not evident on their site~would you kindly provide a link that begins the process?

Thank you!

Bill
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No. of Recommendations: 6
I think this is an appropriate thread to remind everyone that once you reach 70 and a half you can make charitable donations directly from an IRA, without any taxes. Up to $100k per year, and it does count against any RMA. -- RH

I caution people to wade into QCD (Qualified Charitable Distributions) carefully. We set up a QCD with Ameritrade and they fouled it up (took out taxes, didn't notice we had specified that this was supposed to be ongoing distributions.... and then required another form (an inapplicable one at that... designed for pensions and annuities!) to not take out taxes again).

As a consequence, we're moving all our Ameritrade accounts to Merrill and Fidelity. We've already cleared the way with Merrill to ensure they are on the same page as us..... and we're probably dealing with a smarter group of people at Merrill because we have a fairly high-level account type.

So... if you do it, try it out on a small scale first to make sure they're doing it like you intended.

Rob
Rule Breaker Home Fool & STMP/MTH Maintenance Coverage Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.
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No. of Recommendations: 2
It's not evident on their site~would you kindly provide a link that begins the process?

My experience at Fidelity is all you need is the routing number of the target account. You can transfer any number of shares from your account almost instantly. The same works to transfer shares to friends or family members.

In a taxable account, you didn't sell the shares so there is no tax bill due. But you can run into gift tax requirement if over $15K/person per year.

In an IRA, its important to follow rules.
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No. of Recommendations: 0
So is safe to say if you are under the age of RMDs that the tax efficient way to donate to charities is still cash?

I know this goes into the realm of other boards, taxes and retirement.

But I just had a light bulb go off that I could (maybe) donate appreciated (and non-taxed) IRA funds as shares to a charity.

I'm sure I'm getting it wrong. It can't be that easy.

nag
?
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No. of Recommendations: 8
So is safe to say if you are under the age of RMDs that the tax efficient way to donate to charities is still cash?

I think donating appreciated stock from a regular (taxable) account is better than cash.
At least if I'm looking at donating $X worth of appreciated stock that I'd be selling anyhow because I want to reduce how much of that stock I'm holding vs. $X of cash.

The charity gets the donated stock and you get to claim $X donation, while NOT paying any capital gains taxes on it.
Vs. selling + donating cash results in you paying cap gains.
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No. of Recommendations: 3
Bill, absolutely, I should of done that to begin with.

https://www.schwabcharitable.org/

You open a Donor Advised Fund within Charitable and then you link your accounts. Its all Schwab and works pretty easy. The site is about 3-4 years old, and they are continuing to improve it. The key of course is picking your "largest gain" lots, or your lowest cost basis.

You can "leave" the proceeds within the new DAF, that you still control, and you can gift those away in the future. Your deduction is ONLY what you put INTO the DAF. Some people keep investing inside the DAF. This could be good idea if future years the tax deduction isn't as beneficial to you, or if you want to do "blocking".

But for me personally, as soon as I put the contribution into the DAF I want to gift it to the charities. Every charity that I want to give to is listed, and if yours is NOT, you can set it up, you just need the charities FED ID. And of course it needs to be a 503c etc.

I am NOT looking to create a large looking DAF account, I want to get them money where its needed as soon as possible.

Happy to share more. This has been a huge blessing to do this. Much better than trying to get Stock Certificates moved around ;)

Best,

CFD
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No. of Recommendations: 1
nag,

Just the opposite. The most tax efficient way to give to charities (I am 48 and been doing this for about 8 years), is to give highly appreciated assets. And stocks are the easiest to do it.

You can do the account number route that others have mentioned, I used to do that, but Schwab (and others) have seen how making this much easier is a huge benefit, so they are making sites easier to do.

If you still like the stock, you can buy it again at today's prices. You still have the same position, but now there is no gain for Uncle Sam to take a clip at.

Of course talk to your accountant, but this has been both easy to do, a no-brainer to do for us, and a great feel good benefit.

Good luck to all.

CFD
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No. of Recommendations: 4
But I just had a light bulb go off that I could (maybe) donate appreciated (and non-taxed) IRA funds as shares to a charity.

Well, you could potentially donate appreciated stock from a Traditional IRA. But the part about it being untaxed would be incorrect unless you meet the qualifications for a QCD* (Qualified Charitable Distribution). The withdrawal of the stock from the Traditional IRA would be a taxable distribution. Presumably, you would donate the stock immediately, so there would be little/no gain or loss and you eould be eligible to take a Schedule A deduction on the donation. Whether that deduction fully offsets the taxes on the withdrawal from your IRA is dependent on your personal circumstances.

If you are taking the withdrawl that you are going to contribute from a Roth IRA, as long as the withdrawal is a qulified withdrawal, it would not be taxable. You would still be eligible to take a Schedule A deduction on the contribution, which may help offset other income, again, depending on your specific circumstances.

*To make a QCD, you must be at least 70 1/2 years old, the donation must go directly to the charity from your IRA and it is limited to $100k. (Note: You should coordinate the donation through your IRA custodian so they will code the 1099 properly.) After you are required to take RMDs, beginning at 72, the QCD can count for some/all of your RMD. The nice thing about the QCD is that if you're trying to keep your income down to avoid IRMAA Medicare surcharges, for instance, the QCD never hits your AGI. On the other hand, if you do a withdrawal, contribute the withdrawal and then take a Schedule A deduction, as described above, the withdrawal will be counted toward your AGI, and used in calculating any IRMAA surcharges.

AJ
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No. of Recommendations: 0
My experience at Fidelity is all you need is the routing number of the target account.

That has been my experience as well. I have done this twice so far with zero issues. Transferred stock of multiple different companies and from different accounts and all went well.

JLC
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No. of Recommendations: 5
Hi nag,

Since retiring in 2017, I've been volunteering my time with SEMA.SCORE.org. SCORE is an SBA resource partner and national organization of volunteers who offer their time and talent to help small business owners. I have been exceptionally busy during the past 18 months with small business owners applying for, tracking down and using stimulus funds provided through the SBA and local lenders (both the PPP and EIDL lion / grant programs). When we're not under a pandemic, we assist small business owners with getting their business case ready for financial review, with insurance, operational and HR issues, etc. It's a great way for me to use my small business and corporate experience.

SCORE operates mostly out of local Chamber of Commerce offices and I have also recently been on the Board of Directors of dour local Chamber of Commerce. This is a volunteer organization which I can participate and help lead the organization through difficult times. (Chamber membership is dwindling across the country, and we are trying our best to reinvigorate our local Chamber with new leadership, technology upgrades, new board members, additional staff, etc.)

It's exciting for me to participate in the influence of the local business community and it continues to be a rewarding experience.

'38Packard
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No. of Recommendations: 8
Another advantage of the Schwab Charitable route:

Say Mr Old Taxpayer stopped itemizing most years (along with everybody else) when the standard deduction went way up a few years ago.

Now say Mr T is looking at maybe itemizing in just one year for whatever reason - maybe an atypically large amount of gains e.g. a large Roth Conversion.

He looks back at his past charitable donations and finds they've averaged around $X,000 per year for the last ten years.

Mr T then decides to donate ten times $X,000 in to his Schwab fund in that one year and deduct the whole thing - much higher than the standard deduction - thus ameliorating to some degree the capital gains tax

He then can donate from his Schwab Charitable in dribs and drabs over the next decade as he sees fit.

FWIW/YMMV

-sutton
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