These are 'most people's ' greatest ways to donate.
By The Exchange Team
It's easy to donate money to a worthy cause. Financial experts suggest other donation options may be more tax-efficient.
Despite economic uncertainties, roughly 70% of Americans plan to donate the same amount in 2022 as in 2018.
Most people give cash out of convenience, but it's not tax-efficient, says St. Louis financial advisor David Foster.
Retirees 70½ or older who have funds in a pre-tax IRA should first explore QCDs, or qualified charitable distributions.
First source of donating at 70½:
Donor-advised funds are another prominent technique. After transferring assets to a donor-advised fund, you can claim deductions and make future gifts.
Donor-advised funds 'simplify' donating :
For 2022, the standard deduction is $12,950 for single taxpayers and $25,900 for married couples filing jointly, so you won't see a tax benefit for charitable giving unless you claim.
"Lumping" donations from multiple years may make it simpler to achieve these levels.