Most people think monetary donation is the only way to assist non-profits. Many businesses donate their products to charity, often referred to as “in-kind” gifts “or “pro bono” when companies offer their services for free. Often time the company charitable donation of its products can qualify for a charitable deduction within tax limitations. Unfortunately, staff time donated to a nonprofit organization is not deductible. Out-of-pocket expenses (gas, mileage, meals, etc.) for such volunteer work can be deducted within certain limits.
Volunteering your time is another way to help your community; you give of your time, develop valuable knowledge of the organization and possibly new skills. Nonprofit and community groups and organizations are supported by capable, committed volunteers, your time contributions can leverage the financial contributions made to an organization. Volunteerism can be a win-win, you are helping people in the community while giving employees a chance to shine and benefit the company in numerous ways.
Designating a charity as the beneficiary of a life insurance contract can allow you to make a significantly larger charitable gift than out of your current assets. By making a charity the owner of the contract, you can deduct the premiums. Or, you can have the right to change beneficiaries on the contract and not deduct the premium. As the owner of the contract, you can name the charity as partial, sole or contingent beneficiary.
If you have people or causes you care about, you need an estate strategy. Planning ahead and involving legal and tax professionals will help you align your estate with what’s most important to you.
Crystal D. Smith, Peciaum Education Center for Finances, PEC Finances Founder
Peciaum Education Center for Finance, PEC Finances is a Nevada Nonprofit Corporation with IRS 501c3 tax code exempt status.