Many charitable organizations obtain their highest donations at the end of the year. The holiday season brings gratitude and giving front and center in our hearts and minds. Giving to those in need is especially important during the fall and winter when temperatures drop, resources become scarce, and being with loved ones may not be an option.
When your year has been profitable, making charitable contributions at the end of the year can be a way to reduce taxable income WHILE helping others in need. Contact us BEFORE you take money out of your business to avoid unintended tax consequences or damage to the business entity.
Here are 4 great ways to consider helping others while reducing your tax expense.
HUMANITARIAN. Several organizations are first to provide aid or comfort when disasters hit. Not just natural disasters but social disasters and of course, this year COVID-19. Heroes sprang into action from the medical community to individuals caring for their family and neighbors. Many of the organizations that support our heroes were already in existence and many others were created as a result of their courage.
HOMELESSNESS. When community volunteers come together to repair homes for senior citizens or build affordable housing for families who have been financially stricken your contributions are a blessing!
MENTOR CHILDREN. From local to national organizations, encouraging the possibilities and potential of our children gives them opportunities they might not have realized on their own. Without mentorship and encouragement, many children never know what they can become.
RETIREMENT SAVING. Contributions to your retirement or living legacy plans will ensure you and your family will have a secure future as you transition from full-time employment into retirement.
For more contribution plans and learn how you can be a blessing to others and your own legacy with your end of the year contributions, contact Accolade Accounting! Where here to help!
Cheers!
JD Longino, CPA
