End of year donating | Here’s how to maximize your financial contributions

ATLANTA, Ga. (Atlanta News First) - If you haven’t given back yet this year, you’re not alone. Most Americans typically donate to an organization or charitable cause in the last two weeks of the year.

There are ways to maximize your charitable giving, but time is running out. The deadline for making a charitable donation to claim a tax receipt for 2023 is Dec. 31.

Financial expert Bradley J. Rosen from Longevity Financial says one way to save money is to not give. He says to wait until next year. But don’t be a Scrooge. Rosen says to give double next year. It’s called bunching your contributions. Instead of giving every year, save your donations and give twice as much every other year. That way you can itemize your taxes, which saves you money.

If giving monetarily isn’t in the cards this year, Rosen recommends donating things instead.

“When you donate clothing, you get deductions based on weight. So, stack the deck, bring those big coats that you’re no longer using. The more weight, the more dollar value gets assessed,” said Bradley J. Rosen, president of Longevity Financial.

Another way to give is to donate Appreciated Long-Term Securities. Rosen says if you’ve seen significant gains in your stocks, you can donate it to a charity and claim a deduction for the full value of the stock without having to pay income tax on the appreciation.

You can also use Qualified Charitable Distributions, which allows those ages 70 ½ and older to donate up to $100,000 from their IRA.

If you’re looking for a simpler way to give, consider a Donor-Advised Fund, in which you transfer your assets into an account that can be given directly to the charity.

“It’s one of the few times the IRS made things easy for us. You can set this up literally at home on your computer. Imagine creating a bank account where you can just write checks throughout the year to dozens of organizations. Then you get that deduction off your adjusted gross income,” said Rosen.

Finally, give to charities that you’re passionate about and make sure they’re reputable organizations. It’s important to find out, after costs, what percentage of your donations go directly to the cause. Websites like Guidestar.org and CharityNavigator.org look at how nonprofits manage their budget.