Warmth from charitable giving also reduces tax burden
Americans have a charitable streak. In fact, estimates place the percentage of American households making charitable donations each year at 70-80 percent. Research suggests that giving is good for you, too. Donors experience a measurable kind of warm glow or “helpers’ high” from giving to a good cause, studies show.
Even if feeling good is not a motive for charitable giving, it sure is a plus to reap the tax benefits of giving. So it is worth considering the benefits of giving in the most tax-efficient ways, including making gifts of cash and appreciated securities or establishing donor-advised funds and family foundations.