Benefits of Giving to Charity
Citizens of the United States have been making charitable gifts at a record pace. According
to Giving USA Foundation, Americans gave more than $308 billion to charity in 2008
alone, the second-highest amount ever (trailing only 2007's record total of $314 billion.) There are many reasons people
and businesses give to charity. The arts, educational institutions, religious organizations
or environmental causes are a few examples of charitable gift recipients. However,
it is important to realize that charities are not the only entities that benefits
from gift giving. Gifts reward the givers with great financial benefits that can
lead to financial gain.
Tax deductions set forth in the Internal Revenue Code are a primary benefit of charitable
gift giving. The Code provides income tax deductions (subject to limitations that
are based on the giver's adjusted gross income), as well as estate and/or gift tax
deductions. Additional benefits include a reduction, or even elimination, in capital
gains, a retained income stream, and, of course, the psychological benefit of knowing
the money is being put to good use.
Certain gifting techniques, often referred to as split-interest gifts, can be utilized
to benefit the donor, his or her family, and the charity all through a single plan.
This Web site is intended for general information purposes only. It does not nor is it intended to constitute legal, tax or investment advice. Alliance America is not a lawyer, registered investment advisor or investment advisor representative, and is not engaged in the practice of law or the business of investment advice.