If you’re passionate about a cause, donating can be one of the most fulfilling ways to put your money to work. For those of us who are Childfree or childless, charitable giving can also be part of building a legacy that reflects our values—not just our wallets.
Here’s how to donate with both heart and smarts.
💸 Give Now or Later?
You have options when it comes to timing:
- Give now: Your favorite nonprofit will likely appreciate your support today, since operating costs, staff salaries, and day-to-day needs never stop. Bonus: You may also get recognition like donor walls, event invites, or board opportunities.
- Give later: Want to leave a charitable legacy in your will? That’s totally doable—just talk to your CERTIFIED FINANCIAL PLANNER™ to set up a plan that works with your estate goals.
🧾 Know the Financial Impacts
- Donating isn’t just generous—it can also be tax-savvy:
- Donations to a qualified 501(c)(3) nonprofit are tax deductible.
- Want to double-check if your chosen charity qualifies? Use the IRS’s Tax Exempt Organization search tool.
- If you donate $250 or more, you’ll need a written acknowledgment from the charity—keep that for tax season.
Pro tip: To deduct your donations, you’ll need to itemize your deductions when filing taxes. If the standard deduction is higher than your total write-offs, itemizing may not be worth it.
📦 What Counts as a Donation?
- Cash and goods (like clothing, furniture, or vehicles)
- Qualified charitable distributions from retirement accounts (if you’re over retirement age)
- Out-of-pocket costs for volunteering, like mileage—yes, even your gas money might count!
💥 Maximize Your Impact
- If you’re still working, ask if your employer matches donations—it’s one of the easiest ways to double your gift.
- Consider donating RMDs from a traditional 401(k) or IRA. If you don’t need that income, this is a great way to give without increasing your taxable income.
✨ Bottom Line
Giving to causes you care about feels great—but doing it with intention and a plan feels even better. Whether you want to donate now, later, or both, a financial pro can help you make the most of every dollar.
Want to start building your legacy through giving? Let’s chat about how to do it wisely.