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23

The Trinity study looked at 'safe' withdrawal rates from retirement portfolios. They found it was safe to withdraw 4% of a portfolio consisting of stocks and bonds. I cannot immediately find exactly what specific investment allocations they used, but note that they found a portfolio consisting largely of stocks would allow for the withdrawal of 3% - 4% and ...


23

Which charitable cause is the most worthwhile one? That's a very broad and difficult question, both ethically and practically. I do not fathom to estimate whether a dollar spent on vaccinations in country A is worth more or less than a dollar spent on education in country B, clean drinking water in country C, helping the homeless in country D, protecting a ...


20

I'm being taxed at a 40% rate, then I can give $500,000 to charity, write it off, and save $200,000 on my taxes. That's a net loss of $300,000. I may have paid less taxes, but it cost me 300 grand. Your logic is correct. However, here's another way to think about it. Suppose you are being taxed at a 40% rate. You wish to purchase $500,000 worth of diamonds. ...


16

You're clearly aware of the subjective nature of your question, so I won't hit too hard on that point, but I think it would be worthwhile to spend a bit of time focusing on the type of impact you'd like to have. You clearly want to make an impact, so it would be helpful to think about issues that matter to you. Comparing causes is like comparing apples to ...


15

There are a number of benefits to this type of account. If one has highly appreciated stock (think Apple), donations of the stock are taken at current value, so for example, I donate $10,000 worth of shares, which cost me $100. In the 28% bracket, and itemizing, I see a $2800 benefit. But, I also avoid a $9900 capital gain and the 15% tax on that, or $1485....


14

The simplest way to handle this would be to buy money orders, make them out to the charities, and leave your name off them. Money orders don't require you to put your name on them, just the name of whoever they're being paid to. You can mail them with no return address as well if you're sure you have the charity's proper mailing address. This way you can ...


12

Agreed. One of the comments for this question Good books for learning about tax strategy/planning uses the phrase: "Don't let the tax tail wag the investing dog." It applies to charitable donations. Donate because it is expected by your church; donate because it makes you feel good; but don't donate just to save money on your taxes. Once you have ...


11

As someone that has run a nonprofit, my 2 cents: First: thank you for giving and for being conscientious about wanting to make things as easy as possible. The best method is the one you'll actually do. If there is a chance that you will end up not donating by check because you don't have a stamp, you forget, etc. go ahead and do it online. A donation with a ...


10

The lottery commission will withhold tax, typically, 25% federal. For large sums, the millions people dream of winning, the problem lies in that you can't deduct more than 50% of MAGI as a charitable deduction. So, the year you win, say, $4M, you can donate $2M, and keep $2M but have a tax bill on that $2M.


9

You don't consider a situation where people give to "charity" that they're heading themselves. But generally speaking you're correct, the idea is that charity is tax deductible, and people prefer to give their money to their local church where they get the direct benefit of it, rather than to Uncle Sam.


9

Jason I think your doing a great thing. Based on what your describing I would look further into a 501(c)(3). Chapter 3 from the IRS Publication 557 offers information. This Wikipedia gives a quick understanding of 501(c)(3) and how to apply. Here is a great article from ehow it has some suggestions for someone who is just starting out. Maybe going ...


8

Sorry; you'll need to contact each organization and provide new credit card information. (Ideally, you should have done this before canceling your card.) Unfortunately, there's no easy or "bulk" way to do what you seek, unless you used a single intermediary (e.g. PayPal) in the first place – and that's not an approach I would recommend due to fees ...


8

In addition to tax-related benefits, one answer may be that it helps them avoid being inundated with requests to support other foundations. Most charities have access to public records that indicate potential donors based on income and demographic. They can use that info to solicit for donations. "Hey NFL Player, you have lots of money, and we have cute ...


7

Basically to know if a charity is tax deductible in Australia you should do a search on 'ABN Lookup'. In 'ABN Lookup' if you type "Save the children" in the search box it will come up with a few different ABNs. The head office for Save The Children Australia is in Victoria, so you could select the ABN that corresponds to Save the Children Australia located ...


6

Yes, you need the receipt to make the claim. If you are filing online you don't normally send the receipts, but Revenue Canada can ask for them, and if you don't have them you can be in trouble - maybe not prosecution, but certainly some extra attention the next few times you file. What you can do is file without the claim, and then if it is worthwhile ...


6

You could always put cash in an envelope and mail it, with no return address on the envelope. Any form of anonymous donation that I can think of has the risk that if the money is intercepted and stolen, you'll never know. Also, you won't get a receipt that you can use for tax purposes. You could try sending this organization a note saying, "I think you're ...


6

You ask: How do I find the charity that will save the most human lives per dollar donated? You do it by first being clear about your goals and the means you want to use to achieve those goals, and then connecting with people whose business it is to interact with such charities. In more detail: Define carefully what "save" means: prolong healthy life, ...


6

Assuming that this was a direct sign up to donate to Save the Children via text, and not via some third party broker or agent, then Save the Children get 100% of your donation. They have the details on their website: What happens when I sign up? You'll be charged £3 or £5 plus the cost of one standard rate text message in the first month and we'll ...


5

Yes, you really should first either cancel or change the donations to a new card. I got a bill once for a recurring charge on a card cancelled 6 months prior. I suppose I was okay with it, as it was preferable to a rejected charge, but it was a bit unnerving that a cancelled card was still accepting charges.


5

This kind of questions keeps repeating itself on this site and the answer is generally it doesn't matter. As you said yourself, there are costs either way, and these costs are comparable. Generally, merchant fees differ tremendously between the different kinds of merchants, and while gas stations and video rentals may pay up to 5% and even more, charitable ...


5

I know your pain oh, so much. I literally have a 14 gallon rubbermaid container FULL of solicitations I have received. Even worse, for-profit fundraising companies send most of those mailings! They take the money, and deduct their "expenses", rigged to consume almosts all your gift. Some companies have been caught passing as little as 9% to the charity. ...


5

A rather good IRS paper on the topic states that a donation of a business' in-kind inventory would be Under IRC 170(e)(1), however, the fair market value must be reduced by the amount of gain that would not be long-term capital gain if the property had been sold by the donor at the property's fair market value (determined at the time of the ...


5

In the United States you can't setup your own charity matching site unless you are willing to go though state and federal regulations. If you aren't a charity then peoples donations to your site would not be counted as being a charitable gift, unless the you are regulated by the state a federal taxing authorities. If you want your money to be matched: find ...


4

The relevant page of the CRA's 2016 General Income Tax and Benefit Guide explains how to donate money to the federal debt servicing and reduction account. The guide writes: To make a gift to this account, make it payable to the Receiver General, and send it with a note asking that we apply it to this account, to: Place du Portage Phase III, 11 ...


4

Lending is not a charitable contribution. Its an investment. If the loan becomes a bad debt - you'll have to show that it had become a bad debt. For example - bankruptcy declaration. You'll have to show an arm's length transaction, for example - real intention to repay (evidenced by payments of principal and interest made). Otherwise if you have an ...


4

You need to keep in mind that there's an exemption amount of more than $5M (five million) dollars for estate tax. Unless you used all of it for gifts during your life time, it will more than cover all of your $70K estate, so there's no need in any additional planning. As to Roth vs Traditional IRA - if you want to leave something to your siblings, leave ...


4

Generally paying ones medical bills (directly) is exempt from gift tax. So for large amounts (medicine? Hospitalizations? Labs? etc), you can ask the family to just pay the bill to be on the safe side. Otherwise, I'd say it would be the best to set up an account in the name of your mother-in-law, and deposit all the donations (aka gifts) there, making sure ...


4

Do crowd-sourced funds like this attract enough donations from strangers, or will this avenue of generating funds for him be a waste of my time? It depends. There is no simple answer. There are cases where a celebrity endorsed / requested help for a critically ill patient, and the amount of donations that flowed in were 100 times more than what was required!...


4

Usually just telling the charity that you'd like to structure a gift like this will work. Many charities already have donor networks to whom they will forward the notification.


4

You don't get to be your own charity collections engine unless you want to do all the legwork (read: legal work) that has been done by companies like JustGive, IndieGoGo, or Amazon Charities -- among other things to license yourself in every state to be a charitable fundraiser*. There are fifty of 'em! to either make your entity nonprofit, and deal with ...


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