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How Much Does Giving to Charity “Cost” You?

How Much Does Giving to Charity “Cost” You?

| October 18, 2021
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Life is complicated. Math is complicated. Mix the two and add taxes, and things can quickly get overwhelming.

As technology continues to improve, there’s a new analytical tool I have been using that conjured up a question I had not previously considered.

As I donned one of my favorite shirts for Let’s Go Fishing with Seniors this morning, it occurred to me that I did not know precisely what giving an extra dollar did for our tax situation. I guess taxes and financial matters are always on my mind!

It costs roughly $10 for each of our guests to embark on one of our free outings—not including the big pontoon boats or insurance, of course. This is the cost includes gas, equipment, water, life jackets, etc.

After crunching the numbers, that $10 charitable contribution only costs me about $5.80 since it is tax-deductible. It’s nearly a two-for-one deal!

To put it another way, $10 divided by $5.80 in after-tax costs results in a whopping 72% charitable return! I would grab that return hand over fist every day of the week.

In real-world terms, $580 buys 100 trips out on a boat for our seniors. That’s more than 200 hours of fun and fellowship. We've hooked a great deal!

The same math applies if you give to other charities—so long as you itemize your deductions and follow the rules.

We love helping with all of your financial situations, but particularly when it comes to giving to charity. Please reach out to us if you want to see what it costs you to support your favorite charities this year.

Our team can help your family plan charitable contributions so that your hard-earned dollars go even farther toward helping those in need. Maximizing gifts to charity with a keen eye on tax impacts is important.

Thanks for taking a look and if you are looking for a great cause to support, check out Let's Go Fishing with Seniors here!

Tom

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