A recent study of the giving habits of the four major generations showed that baby boomers are the most philanthropic. Although baby boomers only make up 34 percent of the people who give to charitable causes, they are reponsible for contributing 43 percent of the total amount donated. In total, boomers give nearly $62 million each year.
Making charitable contributions is very important to many people in the Bay Area. Often, people write a check once a year or every quarter and send it off to their favorite charities. Did you know, however, that there are other ways to donate that can also help you reduce your tax obligations?
Many people do not realize that leaving money to a charitable organization can be part of an estate plan. Whether you don't have heirs to pass your wealth on to or you simply feel it would be put to better use if given to a charitable organization, including that organization in your will and creating a charitable trust may be a good option for you.
If you do decide to incorporate a charitable trust into your estate plan, it is important to work with an attorney to ensure you are making the right moves. There are several different ways to set up a charitable trust, so it is important to find the one that will best fit your needs. If done correctly, a charitable trust can help reduce your tax obligations while allowing you to continue contributing to your favorite organizations.
Source: Forbes, "Charitable Giving: Baby Boomers Donate More, Study Shows," Deborah Jacobs, Aug. 8, 2013.