We know charitable giving is on your mind. We love that about you! Make the most of it this season and all year long with our charitable contribution tips.
Total giving among Americans is higher than it has ever been. But, when adjusted for inflation, those dollars aren’t stretching far. And we certainly don’t know what 2025 will bring for any of us: windfall or more worry?
It’s more important than ever to give strategically for this reason, especially if your combined charitable gifts and other tax deductions push you past the standard deduction threshold ($14,600 for single filers and $29,200 for married filing jointly). At that point, you might consider itemizing deductions so that every bit counts, up to about 60% of your Adjusted Gross Income (AGI).
A popular way to bunch charitable donations into one year to pass the threshold is to utilize Donor-Advised Funds (DAFs). Contributions to DAFs are deductible when contributed. Thefunds grow tax-free until you’re ready to give them to a cause of your choosing over a period of years. Most large investment brands offer DAFs, including recognizable names like Fidelity, Schwab, and Vanguard. Local groups, including the San Antonio Area Foundation, also offer DAF options.
Traditional ways to give are always appreciated by individual charities as well, whether you give $20 or $20,000. For any donation, understand what type of giving and which organizations qualify for deductions, particularly when giving to charities abroad. Beware of charity scams and always check to be sure the organization is an approved 501(c)3 in good standing. The IRS offers an online tool to help you do that. Then, research the charity through a site like Charity Navigator to be sure its financial health, accountability, transparency and other factors are up to your own standards.
For inspiration, here are some of the top charities in San Antonio in 2024, scoring a perfect 100 on Charity Navigator’s rating scale:
- National Association for Latino Community Asset Builders: A national organization headquartered in San Antonio dedicated to advancing economic mobility in Latino communities.
- Greater Edwards Aquifer Alliance Inc.: Promotes broad-based grassroots advocacy for aquifer protection throughout the twenty-one county Edwards region.
- Petco Love (formerly Petco Foundation): Dedicated to making communities and pet families closer, stronger, and healthier.
- Community Information Now: Provides data, tools, analysis, and training to inform decisions to improve Texas communities.
- Methodist Healthcare Ministries of South Texas Inc.: Faith-based organization looking to make health equity achievable for the people and places in its service area.
- Big Brothers Big Sisters of South Texas: Works to provide children facing adversity with strong and enduring, professionally supported one-to-one mentoring relationships.
- San Antonio Museum of Art: Collects, preserves, and presents significant works of art representing a broad range of history and cultures.
- Primarily Primates: A sanctuary in Bexar County that operates to house, protect, and rehabilitate various non-native animals.
- The Transplant Association of Texas: Assists children and families in mastering the lifelong challenges of pediatric organ transplantation.
Feel free to contact us with questions about your charitable giving strategy and how it may affect your taxes.