Charitable giving: Making a positive difference

Published on

There are countless benefits of charitable giving. Through generous donations, you can make a difference in your community and society. You may also feel happier and even save on your taxes. On September 5th, consider participating in the International Day of Charity by donating to a cause or organization you value. Here are some key things to need to know regarding charitable giving.

Types of charitable giving

  • Donor-Advised Funds: A donor-advised fund allows you to donate cash or securities, which are non-refundable to a non-profit organization. 
  • Real Estate: If you have a property you no longer need, you can donate it to charity. 
  • Cash: With a simple cash gift, you’ll receive a tax deduction that is equal to the amount of money you donated minus the value of any products or services you received in return.
  • Charitable Trusts: The two types of charitable trusts you may want to incorporate into your financial plan include charitable lead trusts (CLTs) and charitable remainder trusts (CRTs). Consult your legal professional and financial professional if you plan to include securities in your trust.

Tax benefits of charitable giving

If you choose to itemize your taxes, charitable contributions can reduce your tax bill. It may be an excellent idea to itemize if the total of your deductions plus charitable gifts equals more than the standard deduction. Thanks to the Consolidated Appropriations Act, you may deduct up to 100% of your adjusted gross income every time you make a charitable cash deduction to a public charity in 2021.

If you decide to give to a charity, ensure it’s a 501(c)(3) public charity or private foundation to receive tax benefits. Then, keep a receipt or another record of your contribution. At tax season, itemize your deductions (if appropriate to your situation) and file your tax return. Your tax professional can help you determine how charitable contributions will impact your tax situation.

The impact of COVID-19 on charitable giving

Charitable giving was at an all-time high during the pandemic. Charitable giving reached a record of $471 billion in 2020. Many Americans choose charitable giving as a way to help others during this unprecedented time. Since they couldn’t volunteer in-person at local charities, many donated their financial resources, despite the economic hardships they may have endured.

Consult your financial professional

If you have any questions on charitable giving or how it may affect your financial situation, we’re here to help. Contact us today to learn more about how securities can help impact your giving ability.

Important disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

LPL Tracking # 1-05182676

You may also like


Three financial moves to consider before ringing in the New Year

Although you don't have to wait until January to begin working on your financial goals, a new year may bring a much-needed fresh start on your spending and saving goals. Read on for three financial moves you may want to consider before ringing in the…


Retirement mistakes to fix before the holidays

Spend as much time fixing your mistakes as you do planning the holidays

You probably spend more time planning your holiday gathering than preparing for your golden years. As a result, you make basic mistakes in trying to fund your…


Your 2021 year-end planning checklist

It may be easy to forget we're nearing the end of the year. Even during the busy end of year rush, it's a good time to reevaluate your 2021 finances and turn an eye toward 2022. What can you do now to potentially improve and streamline your 2022…

General Disclosures

The opinions and views in this blog post are those of the authors, and are not intended to provide specific advice or recommendations for any individual. Please consult professional advisors with regard to your individual situation.


Securities and insurance offered through LPL or its affiliates are:

Not Insured by FDIC or Any Other Government Agency

Not Bank Guaranteed

Not Bank Deposits or Obligations

May Lose Value

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Webster Bank and Webster Investments are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Webster Investments, and may also be employees of Webster Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Webster Bank or Webster Investments.

The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.

The Webster Symbol is a registered trademark in the U.S.