If you’re reading this article, you’re someone who cares about their community. Making monetary donations to nonprofits in your community is a wonderful way to ensure as many people as possible (ideally everyone) has access to the resources they need to be successful.
There’s more to charitable giving than writing a check. This article will share some known and lesser-known ways you can support your favorite nonprofits.
1. Cash Gifts
The traditional way to give, cash donations (by credit card, check or actual cash) are always appreciated. Nonprofits count on these gifts, and they’re a wonderful way to support initiatives by your favorite charities.
2. Stocks & Mutual Funds
Donating publicly traded securities that have appreciated over time can have greater tax advantages than giving cash. You can claim a tax deduction based on the full market value of the securities, and neither you nor the Goodman Community Center will pay capital gains taxes on the appreciated assets.
3. Grants from Donor Advised Funds
A Donor Advised Fund (DAF) is like a charitable investment account, for the sole purpose of supporting charitable organizations you care about. When you contribute to a DAF, you are generally eligible to take an immediate tax deduction. Then, those funds can be invested for tax-free growth, and you can recommend grants to virtually any IRS-qualified nonprofit, like Goodman Community Center.
4. Qualified Charitable Distributions
If you are 70½ years old or older, you can give up to $100,000 from your Individual Retirement Account (IRA) directly to a qualified organization like Goodman without having to pay income taxes on the money. This strategy can lower your taxable income and satisfy your required minimum distribution (RMD) for the year.
5. Legacy Giving
Leave a loving gift to future generations by including your favorite nonprofit(s) in your estate plans. Many people like to leave a gift to charity in their will, while others simply designate a charity like Goodman as a beneficiary of an insurance policy or retirement account. For many of us, these gifts will be the largest we’ve ever been able to make to a nonprofit. (Interested in leaving Goodman in your estate plans? Learn more about our Love & Legacy Campaign.)
BONUS: To make your impact even greater, consider leaving your gift “unrestricted.” This gives the nonprofit you’re supporting the flexibility to put your funds where they need them the most. In these uncertain times, flexibility may just be the greatest gift of all.
No matter how you choose to make your gift, know that your contribution to any of our many local nonprofits is a wonderful way to support the community you are a part of. We are all stronger when everyone in our community has the resources they need to be successful.
Want to keep these tips for your records?
We’ve created a handy Charitable Giving Guide that outlines some of the ways you can make contributions to your favorite nonprofits. Print it and add it to your files to reference for years to come.
February 1, 2024
Art by members of the Madison Art Guild
January 1, 2024
Mixed media on canvas by Holly Strope