Charitable giving: Where head and heart meet

Are you looking to support an organization that helps people in need? Some may choose to give their time and abilities through volunteer service while others may provide financial support. Charitable giving provides an opportunity to engage both your head and your heart in making a difference. The following tips from Thrivent Financial can help donors make the most of their charitable gifts:

• Choose a reputable organization. Never give to an organization without first knowing its purpose and effectiveness. The BBB Wise Giving Alliance can help you evaluate your options.

• Budget for donations. Systematic gifts spread throughout the year may help donors give more than if they give a one-time gift based on their financial leftovers.

• Keep good records. To deduct donations for tax purposes, people must keep an appropriate record of their contributions. The type and value of one’s gift may require specific forms of acknowledgement from the recipient organization. For details, see Internal Revenue Service (IRS) Publication 526.

• Take advantage of tax benefits. In order for a charitable donation to be tax-deductible, the charity must be recognized by the IRS as a qualified organization. Most organizations can confirm their status or you can verify independently at IRS.gov.

• Give generously and wisely. From wills, living trusts, charitable gift annuities, endowments and mini-foundations, to gifts of appreciated stock, retirement funds or real estate, there are many vehicles through which individuals can make charitable gifts.

Special care should be given when determining the option that meets one’s financial circumstances. Gifting some assets to IRS-recognized charities may potentially reduce capital gains tax. Life insurance may also be an excellent option to magnify a gift.

• Consult with experts. Always consult with a financial, legal and/or tax professional before putting a gifting plan into action.

When moved to make a difference, donors should remember there are many options for making a financial gift. Be sure to explore the options and enlist appropriate support along the way. By fully planning a charitable gift, a person can ensure their head and their heart are satisfied.

This article was prepared by Thrivent Financial for use by Robert Kopp, a Thrivent Financial Associate in Newberry, SC who can be reached at 803.260.1620.

About Thrivent

Thrivent is a diversified financial services organization that helps people achieve financial clarity, enabling lives full of meaning and gratitude. Thrivent and its subsidiary and affiliate companies serve more than 2.3 million clients, offering advice, insurance, investments, banking and generosity products and programs over the phone, online as well as through financial professionals and independent agents nationwide. Thrivent is a Fortune 500 company with $162 billion in assets under management/advisement (as of 12/31/20). Thrivent carries an A++ (Superior) rating from AM Best, a credit rating agency; this is the highest of the agency’s 16 ratings categories and was affirmed in June of 2020. Rating based on Thrivent’s financial strength and claims-paying ability. Does not apply to investment product performance. For more information, visit Thrivent.com. You can also find us on Facebook and Twitter.

Thrivent is the marketing name for Thrivent Financial for Lutherans. Insurance products issued by Thrivent. Not available in all states. Securities and investment advisory services offered through Thrivent Investment Management Inc., a registered investment adviser, member FINRA and SIPC, and a subsidiary of Thrivent. Licensed agent/producer of Thrivent. Registered representative of Thrivent Investment Management, Inc. Advisory services available through investment adviser representatives only. Thrivent.com/disclosures.

The concepts presented are intended for educational purposes only. This information should not be considered investment advice or a recommendation of any particular security, strategy, or product.

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