Unlock the Power of Giving: Donating More Than Just Cash

Everyday you can see the impact of the great charities we work with.  A family receiving safe housing, a neurodiverse athlete inspiring others, a veteran receiving reliable transportation, or a family having access to sustainable food resources.   We’re incredibly proud of our great partner charities but this impact becomes reality thanks to the generosity of individuals who choose to give more than just cash. Noncash charitable giving, the donation of assets like vehicles, artwork, or stocks, offers a powerful way to support the causes you care about while potentially unlocking significant benefits for both you and the charity.

This article will guide you through the world of noncash charitable giving, exploring the diverse types of donations, the advantages for donors and charities, and crucial considerations to keep in mind. Most importantly, we will focus on how to ensure your generosity benefits reputable and transparent organizations and provide you with valuable resources to make informed decisions.

Beyond the Wallet: Exploring Types of Noncash Donations

Understanding the different types of assets you can donate can open up new avenues for giving:

• Tangible Personal Property: A wide array of physical items can be donated. Reputable charities will typically have clear guidelines on the types and condition of tangible items they can accept and effectively utilize.
• Clothing and Household Items: Donations of gently used clothing, furniture, kitchenware, and linens are common and can significantly benefit charities that directly assist individuals and families in need. These items often help people transitioning out of homelessness or those facing financial hardship. Charities that operate thrift stores rely heavily on these donations to fund their programs.  One of our favorite is Habitat for Humanity’s Restore Program 
• Vehicles (Cars, Boats, Planes): Donating a car, boat, or even a small airplane can provide crucial funding for a charity. Every year close to one million vehicles are donated to U.S. Charities. The donation process is simple and straightforward.  We’re proud to represent a collection of the very best and most transparent charities.
• Artwork and Collectibles: Donations of paintings, sculptures, antiques, rare books, or other collectibles can be highly valuable. Charities may choose to display the artwork, sell it at auction to fund their programs, or even incorporate it into educational initiatives. The valuation of such items often requires a qualified appraisal.
• Real Estate: Donating property, such as a house, land, or commercial building, can be a substantial contribution. Charities may use the property for their operations, sell it to fund programs, or even develop it for a specific purpose. These donations often involve more complex legal and logistical considerations. For more information on donating real estate visit our blog here. 
• Inventory: Businesses can donate excess inventory, such as unsold goods, supplies, or equipment. This can be particularly beneficial for charities that provide direct aid or job training in specific industries. For example, a clothing retailer might donate unsold apparel to a homeless shelter.

• Intangible Personal Property: These are assets that don’t have a physical form and can offer unique opportunities for charitable giving:
• Stocks and Bonds: Donating appreciated stocks and bonds that you have held for more than a year can be a tax-efficient way to give. As mentioned earlier, you may be able to deduct the fair market value and avoid paying capital gains taxes. Charities can typically liquidate these assets to fund their operations.
• Intellectual Property (Patents, Copyrights): Individuals or businesses holding patents, copyrights, or trademarks can donate these rights to a charity. The charity can then potentially license or sell these rights to generate income to support its mission. The valuation of intellectual property can be complex and often requires specialized expertise.
• Life Insurance Policies: You can donate a life insurance policy by naming a charity as the beneficiary or by irrevocably assigning ownership of the policy to the charity. If you donate the policy outright, you may be able to deduct the policy’s cash surrender value (or its replacement cost if it’s a new policy and the cash surrender value is negligible).
• Digital Assets (Cryptocurrencies, NFTs): While relatively new, some charities are beginning to accept donations of cryptocurrencies and Non-Fungible Tokens (NFTs). The tax implications and valuation of these assets are still evolving, so it’s crucial to consult with a tax professional. Charities accepting these donations often use specialized platforms to process them.

A Win-Win: Benefits for Donors

Donating noncash assets can offer several advantages for you:

• Tax Deductions
• Avoiding Capital Gains Taxes
• Simplifying Estate Planning
• Supporting Causes You Care About

Empowering Organizations: Benefits for Charities

Noncash donations can be invaluable resources for charitable organizations, especially those operating ethically and transparently:

• Expanding Resources
• Program Support
• Community Engagement

Giving with Confidence: Important Considerations and Choosing the right charity

As of 2023 there are over 1.5 million legally registered 501(c)(3) organizations in the United States.  All of these organizations don’t contribute equally to society.  The IRS lacks the enforcement resources to police these organizations routinely, we encourage you to choose carefully when selecting a worthy organization.

Research the Charity’s Legitimacy and Mission:

• IRS Status: This is paramount for tax deductibility. Verify the charity’s 501(c)(3) status on the IRS website. If they don’t have this designation, your donation won’t be tax-deductible.
• Charity Watchdog Organizations: Utilize resources like Give.org (Better Business Bureau Wise Giving Alliance), Charity Navigator, and GuideStar to check a charity’s accountability, transparency, and financial health. These sites evaluate charities against comprehensive standards.3
• Mission Alignment: Choose a charity whose mission aligns with your values. Do you want to support environmental causes, animal welfare, helping veterans, or providing housing? 
• Direct Contact: Visit the charity’s website and look for clear contact information, including a full address. Be wary of organizations that randomly contact you about donating goods as this could be a scam.

As with any gift to charity beware of shark infested waters.  If impact matters to you then careful research is required.