How To Donate

Most people are aware that the tax laws encourage gifts to charities by allowing tax deductions. Both the donor and the charity benefit: The donor pays less tax, and the qualified charitable organization—such as a humanitarian organization, hospital, university, church, or arts group—gets needed financial support. Depending on the circumstances, donors may receive income tax, capital gains tax, and estate and gift tax benefits by making charitable gifts.

But did you know that the tax laws provide you with several options as to how you give your gift and who will benefit? For example, your charitable gift can give you not only tax benefits but also income. This article gives an overview of the two broad categories of charitable gifts you can make: outright gifts and gifts with a retained interest.