{"id":9867,"date":"2025-02-08T19:28:17","date_gmt":"2025-02-08T19:28:17","guid":{"rendered":"https:\/\/finderica.com\/?p=9867"},"modified":"2025-02-08T19:28:17","modified_gmt":"2025-02-08T19:28:17","slug":"heres-how-giving-tuesday-could-help-you-come-tax-time","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=9867","title":{"rendered":"Here\u2019s How Giving Tuesday Could Help You Come Tax Time"},"content":{"rendered":"\n
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The holidays are a time for giving \u2014 not just getting. But if you\u2019re <\/span>hoarding your pennies<\/span> like we are, then donating to charity may not be your top priority.<\/span><\/p>\n

But after we enjoy Black Friday and Cyber Monday, it will be time for Giving Tuesday. Instead of buying more stuff, this international movement is asking you to donate to causes you care about. And they\u2019re asking you to do it <\/span>right now<\/span><\/i> \u2014 otherwise, you might not get around to it.<\/span><\/p>\n

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Can You Survive 10 Days of Budgeting?<\/h3>\n

If you need to wrangle your budget, it may be time to consider a savings challenge. Our\u00a010-Day Savings Challenge<\/a>\u00a0will teach you how to make your money work for you with a high-yield savings account, stop overpaying on Amazon, earn money for trying out apps or watching movie previews and more.<\/p>\n

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Not to sound greedy, but there may be something in it for you, too (besides the fuzzy feeling you get supporting a good cause). You could score a charitable tax deduction by donating to your cause of choice, and it\u2019s worth doing that before the end of the calendar year. It\u2019s important to understand the rules first, though.<\/span><\/p>\n

We also have tips for making sure your donation is going to the right place \u2014 where it will actually help real people, not scammers.<\/span><\/p>\n

Here\u2019s everything you need to know.<\/span><\/p>\n

More From The SS:<\/strong>\u00a0The Dumbest Things We Keep Spending Too Much Money On (And How to Stop)<\/a><\/p>\n

When Is Giving Tuesday?<\/strong><\/h2>\n

This year Giving Tuesday is on Dec. 3.<\/span><\/p>\n

The movement started in 2012, and with the help of social media, it spread quickly. It has grown into a global phenomenon over the past decade or so. There are Giving Tuesday movements active in nearly 100 countries.<\/span><\/p>\n

Last year, roughly 34 million Americans participated, donating a total of $3.1 billion. <\/span><\/p>\n

What\u2019s This About a Tax Break?<\/h2>\n

It\u2019s true: You might be able to <\/span>claim a tax deduction<\/span> if you donate to charity.<\/span><\/p>\n

But we\u2019re going to be honest with you here: Because of the way the U.S. tax code is written these days, this deduction might not apply to you unless you\u2019re relatively well off.<\/span><\/p>\n

Tax deductions, also known as tax write-offs, lower your taxable income to let you pay less in taxes. When you file your taxes for 2024, you\u2019ll have two options:\u00a0<\/span><\/p>\n

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  1. The standard deduction: a predetermined amount that gets subtracted from your income.<\/span><\/li>\n
  2. Itemized deductions: individual deductions that take into account your expenses, like charitable donations and some health care costs.<\/span><\/li>\n<\/ol>\n

    The thing is, you can deduct your charitable donations only if you itemize. And most people don\u2019t itemize these days because the standard deduction has risen to the point where it\u2019s <\/span>$14,600 for single filers or $29,200 for married couples.<\/span><\/p>\n

    Your itemized deductions have to add up to more than that, or it\u2019s not smart to itemize.\u00a0<\/span><\/p>\n

    Now, if you<\/span> are<\/span><\/i> itemizing, financial experts will often recommend that you donate stocks or other investments instead of cash. Doing this is a way to avoid capital gains taxes while still getting that charitable deduction. You\u2019d want to talk to a financial adviser about this.<\/span><\/p>\n

    Related:<\/strong>\u00a0Here\u2019s How to Start Saving Money \u2014 Even If You Don\u2019t Have Room in Your Budget<\/p>\n

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    Is Your Paycheck Not Going As Far As It Used To?<\/h3>\n

    We get it. Everything<\/em> is more expensive than it used to be, but your paycheck hasn\u2019t kept up.<\/p>\n

    When money is tight, these resources<\/a> will help nearly everyone.<\/p>\n<\/div>\n

    Make Sure Your Donation Isn\u2019t Wasted<\/h2>\n

    Even if you\u2019re not getting a tax break out of it, you might still consider donating to a favorite charity. But how can you make sure you\u2019re donating to a worthy cause?<\/span><\/p>\n

    The biggest and most popular <\/span>charities in the U.S. include United Way, Feeding America, the Salvation Army and Habitat for Humanity \u2014 all of which contribute at least 80% of funds they raise to those in need, with less than 20% going to overhead. (That\u2019s not as easy as it might sound. Even charities have to pay employees and for fundraisers to make the magic happen).<\/span><\/p>\n

    Maybe you\u2019d prefer to donate to a local charity or a more specific cause, though.\u00a0<\/span><\/p>\n

    You should definitely vet that charity first. Charity Navigator is a good way to do that. It allows you to search for charities by cause, location, size and keyword. Then, more importantly, it displays ratings for each charity based on its finances, transparency and accountability.<\/span><\/p>\n

    It\u2019s an easy way to see which charities are responsibly effecting change with the money they receive. Other websites like CharityWatch and GuideStar also analyze and rate charities.<\/span><\/p>\n

    How to Help If You\u2019re Broke<\/h2>\n

    Even if <\/span>you\u2019re broke<\/span>, don\u2019t worry; you can still get behind Giving Tuesday. If you don\u2019t have any money to spare, here are a few ways to participate without opening your wallet:<\/span><\/p>\n