Are Your Charitable Donations Really Helping Your Taxes?

Since we’re coming up real quick on the end of the year here, I know that a lot of you have been putting a ton of energy into the holidays (no matter what denomination of whatever religion or non-religion you may or may not follow, well, religiously). However, you should really be thinking about the way your taxes are going to play out, and charitable donations are a tricky part of it all.

 

Americans gave $358.38 billion in 2014, a 7.1% increase from 2013, and equivalent to a whopping 2% of the U.S. gross domestic product (GDP). The majority of that giving, $258.51 billion, came from individuals, representing 72% of all charitable donors.

Making a charitable donation is not only a chance to make a difference: it’s also an excellent way to reduce your tax burden for the year. The tax benefit is considered a compelling reason for making charitable deductions: more than two-thirds of high-net-worth donors said they would decrease their giving if they did not receive a corresponding tax deduction. Continue Reading