How Philanthropy Benefits Both Your Health and Finances

The end of the year is a time for many people to reflect and give back to their communities. Making a charitable contribution is a great way to do this – with a few added benefits. Giving back may help you reduce your taxes, while also enhancing your well-being, fostering a longer and happier life.

It is not clear why philanthropy is linked to longevity and happiness. Theories include: giving to others can help to reduce stress and improve mental health; philanthropy can help to build social connections and a sense of community; it can also give people a sense of purpose and meaning in life. All are beneficial for both physical and mental health.

If you want to make donations to philanthropic organizations this year, keep in mind:

• Find a philanthropic cause that you are passionate about.
• Select an organization that you respect.
• Choose a qualified organization. To be eligible for a tax deduction, your donation must be made to a qualified charity and must be registered with the IRS as a 501(c)(3) organization. Find a list of qualified charities on the IRS website.
• Document your donation. Keep a record of your donation, including the name of the charity, the amount and date of the donation
• Consider the timing of your donation. Is it best to make the donation this year or next?
• Consider donating appreciated assets. If you donate appreciated assets, such as stocks or real estate, you can deduct the fair market value of the assets. This can be a great way to reduce your capital gains taxes.
• Consult with a financial professional who can help you determine the best approach for your philanthropic giving strategy.
• Get involved: in addition to making a financial contribution, you can also get involved with a charity in other ways. This could involve volunteering your time, fundraising, or spreading awareness about the charity's work.

If you are looking for ways to improve your physical and financial health, consider giving back to your community. Oppenheimer is here to assist. Click here to find a financial professional today to help develop and implement your giving plan.