As the season of Thanks and Giving approaches, we must be mindful of those who would fraudulently solicit our generosity. Our desire to help those less fortunate, whether they are economically disadvantaged or recovering from recent natural disasters, should be tempered with careful consideration and research into these organizations.

There are many worthy causes that welcome donations at times of crises and throughout the year. In a recent Forbes article, Kelly Phillips offers a few tips for smart giving:

• Be wary of personal solicitation on your doorstep or over the phone. A qualified organization will have many legitimate methods of payment. Give securely and remember to never send cash through the mail.
• Check out the credentials of a potential charitable organization before you donate. You can call or go online to the IRS to confirm their status. (Religious organizations are usually pre-qualified and so won’t be listed.)
• There is nothing wrong with donating to new charities; however,  there is something to be said for those that have been around for a while.
• Use caution when donating to individuals.

Some of the tax rules* that apply to charitable donations are good rules to follow even if you’re not claiming a tax deduction, as these practices can help validate the organizations.

• Document your gifts and get receipts, even for cash.
• Consider donating appreciated assets.

Thieves do not just exploit charitable intentions; they will also target your gift buying this holiday season.

• Scammers can make fake websites or social media ads imitating a brand you trust or offering an amazing deal. Be wary of pop-ups and sites that have only minimal information or disclosures.
• Scammers can trick you into typing in two payment methods with a false “card -declined” message.
• Scammers can mislead you with messages regarding delivery changes or delays by providing fake tracking links that install malware on your device.
• Even gift cards bought in stores can be tampered with. Check for torn packaging or scratched-off codes before purchasing.

See this article from Maryanna Antoldi for more tips.

Asset Advisors is an investment management firm offering many services to our clients, including planning your charitable giving and shopping budget! Give us a call at 706-650-9900 to schedule an appointment with a Certified Financial Planner™ professional.

 

 *More tax tips on charitable giving:

• Donate from retirement assets beginning at age 70.5. The amount donated is excluded from your taxable income, no itemizing required. The maximum amount allowed for Qualified Charitable Distributions (QCD) is $105,000 for 2024.
• If not using QCDs, the amount you can deduct for charitable contributions is generally limited to no more than 60% of your AGI, or less, depending on several factors.

Asset Advisors is happy to work with your accountant on tax management.

 

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP^® and CERTIFIED FINANCIAL PLANNER™ in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.