PC-ES Charitable Giving PC1337-Digital

PC-ES Charitable Giving PC1337-Digital

TAX MANAGEMENT

CHARITABLE GIVING

Smart Tips for Charitable Giving

Charitable giving is a great way to support the causes you care about, and could help reduce your tax burden. Consider these tips as you develop your giving strategy. ASSESS YOUR PERSONAL FINANCIAL SITUATION FIRST It’s important to understand how much money you need to maintain your standard of living and how much remains – in assets or current income – for charitable causes. This assessment is particularly important with larger gifts or when you are retired and living on a fixed income.

Wealth | Investments | Planning Commerce Trust Company

TAX MANAGEMENT

CHARITABLE GIVING

ESTABLISH YOUR GOALS Reconsider giving money to every organization that sends you donation requests. Find a cause you are passionate about, and then identify organizations to support by determining whether your values and beliefs align with the organization’s mission. RESEARCH THE ORGANIZATION Do your homework before you make a donation. The organization should clearly articulate its mission and whom it serves, and be able to share outcomes. If you are interested in a tax deduction, confirm the organization’s 501(c)3 status. REVIEW THE CHARITY’S FINANCIALS Understand how your donation will be used. While overhead costs should not be a deal breaker, it is important to compare operating costs to program costs. Resources like Charity Navigator can help. CONSIDER ALTERNATIVE FORMS OF GIVING Don’t overlook the benefits to you and your cause from

TAX MANAGEMENT

CHARITABLE GIVING

bequests, charitable gift annuities, gifts in kind, endowments, and many other creative forms of giving. Talk with your advisors about your options. INVESTIGATE MATCHES Many grant makers and donors offer funds to match donations by other benefactors. Matching gifts can help boost your gift. KEEP YOUR FINANCIAL ADVISORS INFORMED Make sure your financial team – including your financial advisor, attorney, and tax advisor – is aware of your charitable giving, especially if you plan to donate large amounts of money, securities, real estate, or other valuables. DOCUMENT YOUR GIVING, NO MATTER HOW YOU GIVE Documenting any and all gifts is crucial. Be sure to contact your financial advisor before you make a charitable contribution to determine the documentation you will need at tax time. Because tax guidelines can vary, seek the advice of your tax professional for additional information.

TAX MANAGEMENT

CHARITABLE GIVING

FOLLOW UP Look at your donation as an investment in an organization. Check its website for progress on what it is doing and what it has accomplished. Create a relationship with the organization and support it over time. BE A PROACTIVE GIVER! In addition to financial support, consider giving your time and skills. Not only will you help the organization, your hands-on experience will tell you how well-managed the organization is and how effectively it accomplishes its mission.

Contact a Commerce Trust advisor today to discuss your charitable giving goals and explore your options. 1-855-295-7821 | commercetrustcompany.com

Wealth | Investments | Planning Commerce Trust Company

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE