'Tis the Season for Giving

She emphasizes that this is "a mind-set, more than a pocketbook" issue. Once you feel confident about your financial plan for the future, you can "afford" to give on a regular basis, even if only in small amounts. If you really want to structure your giving, you can create your own "foundation" through donor-advised funds, such as those offered by Vanguard, Fidelity and many other financial-services firms. These funds allow you to take an immediate tax deduction for your contribution.

Then the money can grow over a period of years in a selection of special mutual funds, until you give instructions for distribution to a registered 501(c)(3) charity.

If your investments prosper, your foundation could grow, even as you direct disbursements to qualified charities. Families can set up these accounts, encouraging children to make annual, deductible contributions -- and then you can craft a plan for future distributions to worthy and official charitable causes.

There is one drawback: While others may contribute to your foundation and take a deduction, the money can only be distributed to registered 501(c)(3) charities, not to an individual.

New Tax Rules for Charitable Contributions

A significant amount of contributions are made in cash, whether through dropping money into the collection plate or the Salvation Army kettle during the holiday season. But the new Pension Protection Act of 2006 tightened the rules.

« Previous Page

1 2 3 4

Next Page »