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Dependable Midwestern Financial Advisors

Charitable Giving

What is Charitable Giving?

Simply put, charitable giving is the act of a gift of cash or property made to a nonprofit organization. This is usually to help or honor the organization’s goals, an action for which the donor receives a tangible tax deduction, as well as something intangible in the satisfaction of donating to a cause important to themselves.

Some points to take notes of in regards to charitable giving are:

  • Taxpayers may deduct charitable contributions up to 60% of their adjusted gross incomes; this is capped depending upon the charitable vehicle and subject to change should laws change.
  • Charitable donations to individuals, no matter how worthy, are not deductible.
  • Donations totaling more than $300 in a year must be itemized.
    • Note: According to the CARES Act, taxpayers who do not itemize their deductions and take the standard deduction instead are allowed up to a $300 deduction for charitable cash contributions in 2020. The Consolidated Appropriations Act extended this deduction to 2021. Married couples filing jointly who don’t itemize can deduct up to $600 of donations in 2021. Also, there is a limit to non-cash items that require appraisal.

Charitable donations in the United States can be deducted from the federal tax returns of the companies and individuals who make them.

In fact, the average U.S. taxpayer is eligible to deduct up to 60% of their adjusted gross incomes annually. Those deducting more than $300 in charitable contributions need to use Form 1040 or a 1040-SR form. They must also itemize their deductible contributions on a Schedule A form. 

For charitable donation recordkeeping, see IRS Publication 526

How does Midwestern Financial help with charitable giving?

Charitable giving tends to bring an immense amount of reward to both our clients and MFG alike. Not only does charitable giving grant eligibility for tax breaks, but it’s an opportunity to give back to the community as a whole and create a positive impact. 

As with all aspects of our financial planning process, the first question we ask is: what’s the overall plan? What is your personal financial situation, how would you like to see your money distributed, over what kind of timeline, and to what specific organizations/groups would you want to see your funds given to?

One quality we like to emphasize for all our clients is the impact of the dollar today, and how it will change in the future. This can be a reason to give aggressively sooner rather than later, in order to see both more rewarding financial and community-based returns. However, giving today must be assessed in the context of all other goals and income expectations throughout one’s life.  

At the end of the day, however, it’s not our place at all to say what is right or wrong, or where or who you end up deciding to give your money to. Our goal, first and foremost, is to give you the information you feel is necessary to make the right decision for you and your circumstances, no matter what. 

Midwestern Financial Group: Charitable Giving, Made Easy

At MFG, we are driven by one goal: to help our clients build a bright financial future. We do this by providing unbiased, fiduciary financial planning and analysis. This means that our only payer is our clients—we don’t sell any products or take commissions. With MFG, you can be confident that you are receiving high-quality, goal-oriented financial services.

If you’re looking for help with your finances, our professional advisors can assist you with a wide range of needs. From investments and asset management to creating a college savings plan, we can help you achieve your financial goals. Contact us today to learn more about how we can help you reach your full potential.

Fiduciary Advisors

How Our Process
Works
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1. Introduction

First, we get to know each other— what your life is like, what is most important to you, and what your hopes and dreams are. We’ll help you get to know us, too. We believe that honesty and trust are key to fostering a productive advisor relationship.

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2. Goal Setting

Next, well review your financial data to get a sense of where you are today and how we can improve your financial future. We brainstorm goals unique to you and assess what future liabilities may be present, so we can plan for those as well.

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3. Planning

Our advisors then prepare a recommended financial plan focused on hitting your personalized goals. Our fiduciary standard ensures that recommendations are in your best interest — not to sell financial products or generate commissions.

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4. Management

After we implement the recommendations, you can rely on us to constantly monitor outcomes and track the progress towards your goals. We’ll work together to adjust the plan for life changes or market returns.

Midwestern Financial Group
The dedicated team you need.
Joseph Jay Midwestern Financial FiduciaryAdvisor
Joseph Jay, CFA
Founder & Managing Partner
Patrick Campbell Midwestern Financial Fiduciary Advisor
Patrick Campbell
Founder & Managing Partner
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Trajan Wells
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