If you want to give money to charities you believe in, you may want to consider two strategies that can help you boost your bottom line.
Instead of giving cash, try donating appreciated securities, such as stocks or mutual funds, according to certified financial planner Sophia Bera, founder of Gen Y Planning.
If you itemize your taxes, you can get a tax deduction for the amount that stock is worth, Bera said. The charity, in turn, does not have to pay the capital gains that you would have to pay if you sold the investment on your own.
“It’s a benefit both for you and for the charity,” Bera said.
Just be aware that while you can still get a deduction for giving to charity under the new Tax Cuts and Jobs Act, it may be tougher to obtain.
That is because in order to get a charitable deduction, you need to itemize instead of taking the standard deduction. But the size of the standard deduction has almost doubled, which makes that a higher hurdle to clear.
You may also want to consider opening a donor-advised fund, Bera said.