Donating for the holiday season? Here are suggestions to map out your charitable plan

Ask for a receipt for each donation, group says

One of the best ways to evaluate progress toward pursuing your financial goals is with an annual review, according to Texas Financial Advisory.

It’s that time of year to celebrate the holidays coming up!

With holiday festivities right around the corner, it’s also important to keep tabs on what items you donate to charitable organizations in addition to an annual review.

One of the best ways to evaluate progress toward pursuing your financial goals is with an annual review, according to Texas Financial Advisory.

Late December and the beginning of the new year is an ideal time to conduct this appraisal. It shouldn’t be a time for regrets and second-guessing about the things you did or didn’t do. Instead, focus on the investing experience you’ve gained.

Brooklynn Chandler Willy, president and CEO of Texas Financial Advisory, explained the basics of how to map out your charitable plan and contributions and position yourself to move closer to your goals in the new year.

1. How can giving toward a charitable donation benefit you?

The gifting principles, tax benefits and philanthropic rewards of charitable giving can be relatively the same, regardless of how large or how small your gift is.

  • Making a charitable donation can offset your income or estate taxes.
  • Making a charitable donation can also give you a sense of personal fulfillment.
  • A very important benefit is that it also provides for advanced financial planning, which leads to financial confidence.

2. What are things to think about before making a charitable donation?

Research your charity, do your homework and read the charity’s financial statements to see how they spend their (your) money.

  • Ask for a receipt. For charitable contributions of $250 or more, you need a donor’s acknowledgment letter, and generally, it is a good idea to obtain receipts, especially when donating goods.
  • Don’t delay. If you will be making a donation for which you plan to claim a deduction, remember that your gift must be made by Dec. 31.
  • Remember, too, that only contributions to IRS-qualified charities are deductible. But of course, while tax deductions are nice, giving to those in need is the real draw.

3. How can I position myself to be ahead for 2022?

  • Consider opening or adding to an IRA. Annual contributions limits are scheduled to increase in the coming years with additional “catch-up” contributions allowed for those 50 and over. Evaluate to see whether a traditional IRA or Roth IRA makes sense for you.
  • If you haven’t already done so, you may wish to take some losses in your non-retirement portfolio accounts. The losses can offset profits earned from other investments in your portfolio.
  • Rebalance your portfolio. Uneven price movements in your investments can upset the balance over time. Is your actual asset allocation in line with the desired allocation mix, determined by your risk tolerance profile? Maybe an adjustment is necessary.

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