Ep 453: Making An Impact For A Nonprofit You Love
HerMoney with Jean Chatzky
Deep Dive
Why has charitable giving decreased in recent years?
Charitable giving has decreased due to tax changes that made itemizing less advantageous, reducing the incentive for small, annual donations. Additionally, inflation has impacted disposable income, further reducing giving.
What is the significance of Giving Tuesday for nonprofits?
Giving Tuesday is a crucial moment for nonprofits to rally support and remind donors of the importance of giving. It often sees an uptick in digital contributions, which are promoted heavily through digital channels.
How can small donations make a difference for nonprofits?
Small donations, like $10, can fund specific initiatives such as providing CPR kits to schools or community organizations. Every dollar, regardless of size, contributes to the mission and goals of the nonprofit.
What are donor-advised funds (DAFs) and how do they work?
Donor-advised funds are investment accounts earmarked for charitable giving. Donors contribute to the fund, receive a tax deduction in the year of the contribution, and the money grows tax-free. Donors can then recommend grants to charities over time, allowing for larger donations later.
Why is donating appreciated securities a smart strategy?
Donating appreciated securities allows donors to avoid capital gains tax on the increase in value of the stock. The full value of the stock is also tax-deductible, making it a win-win for both the donor and the charity, as the nonprofit can sell the stock tax-free.
How can giving from an IRA benefit retirees?
Retirees can donate directly from their IRA to a charity, which counts towards their required minimum distributions. This allows them to give money without paying taxes on it, providing a tax benefit while supporting charitable causes.
What should donors consider when choosing where to give?
Donors should follow their hearts and support causes that matter to them. They should also research charities through organizations like Charity Navigator to ensure their donations are used effectively and transparently.
What exciting research is the American Heart Association focusing on for women?
The AHA is researching 'MINOCA' (Myocardial Infarction with Non-Obstructive Coronary Arteries), a type of heart attack unique to women, often triggered by stress. The goal is to develop a diagnostic test to identify these heart attacks more accurately.
- Charitable giving dropped 2.1% in 2023.
- Tax changes made itemizing less advantageous, impacting small donations.
- Inflation also contributed to the decline in giving.
Shownotes Transcript