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With more than 85 percent1 of Americans supporting non-profit organizations, the Fidelity Charitable
Gift FundSM compiled the following tips to help donors establish a strategic plan for giving this holiday season:
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Be a proactive giver.
Instead of responding to weekly or even daily solicitations around the holidays, donors can become more organized givers and make a significant difference for their charities of choice by streamlining grants through organized giving vehicles. For example, a donor-advised fund allows donors to benefit from an immediate tax deduction while allowing them to recommend grants to charities on their own timetable.
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Know your charity.
When researching a charity, be sure to learn more about how the organization seeks to achieve its goals, which can be done by asking for written information or checking the charity's Web site. The Fidelity Charitable Gift Fund Web site, located at www.charitablegift.org
contains valuable information and links to help donors evaluate more than 850,000 non-profit organizations.
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Make sure donations are tax-deductible.
Some organizations use the term "tax-exempt" and "tax-deductible" interchangeably, but they are not the same. Tax-exempt refers to the status of the charitable organization and does not necessarily mean that contributions to this organization are tax deductible.
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Donate appreciated securities.
The recent market rise has resulted in many individuals holding securities that have appreciated in value. Instead of selling the securities and paying taxes on the profit, investors should consider contributing them to their favorite charitable organization to avoid capital gains taxes and take an immediate tax deduction for the full market value of the stock.
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Don't miss the year end deadline.
Individuals who need a deduction for tax year 2003 should remember to make sure their charitable donation is postmarked by December 31st. The Fidelity Charitable Gift Fund, one of the largest public charities, was established in 1992 to substantially increase the level of charitable giving across America. Since the Gift Fund's inception, more than 30,000 donors have recommended grants totaling $3.8 billion to more than 77,000 nonprofit organizations nationwide.
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1 Marshall Marketing and Communication, "Customer Focus 2003: Nonprofit"
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