Jimmy Lustig is an active philanthropist. He and his wife created the Lustig Family Foundation.

Month: June 2019

Tax Benefits Of Philanthropy James Lustig

The Tax Benefits of Philanthropy

Volunteering in a charitable organization that is important to you can provide many altruistic benefits, like a feeling of selflessness and compassion. Those benefits alone are typically enough for individuals who are heavily involved in philanthropy and serve as a motivating factor to continue to contribute. However, as an added bonus, philanthropic contributions can also provide financial benefits to volunteers as well in terms of their taxes. While tax deductions are not typically the driving factor behind most philanthropic engagement, it is still helpful for volunteers to know about the fiscal benefits of their hard work and dedication.  


Cash Donations

Donating money to a charitable organization provides them the opportunity to choose what they use your contribution for. In most cases, monetary donations are used by philanthropic organizations and nonprofits to cover expenses. Since nonprofits do not receive revenue profit, as the name alludes to, all expenses that they face are covered by donations or pro bono contributions. This can go towards amenities and necessities like supplies, research, events, and employee compensation. So long as you save your receipts and any documentation of monetary donations, you can claim a tax deduction for the fiscal year in which it was made.  


As with any governmental involvement, there are limitations on these tax deductions. However, for most individuals, the ceiling of how much you can donate is not usually an issue. A percentage of your gross income is able to be match from your contribution to your tax deduction. It is recommended to consult with a local tax professional if you plan to make a bigger donation to be sure that you are educated on your tax deduction limitations.  


Non-cash Donations

Non-cash donations offer an endless amount of ways that individuals can get involved in philanthropic endeavors. Many people think that they are not fit for philanthropic involvement due to a lack of funds but this is not the case. Volunteering your time is a great way to help a charitable cause while remaining financially sound. Since most charities run as non-profit entities, they are always welcoming volunteers to assist their employees in their missions. You can itemize a list of the resources that you used to volunteer for tax deduction benefits, like time, mileage, parking expenses, etc.


Donating items like clothing, glasses, shoes, furniture, and technology are another way that people can be involved in bettering society through philanthropic contributions while also ridding themselves of items that they no longer need. As always, saving the receipt for these donations will make them tax deductible. 


There are also a number of very generous individuals who donate high value items like cars, houses, and land. There is a fair amount of paperwork involved in these donations as the items carry a higher appraisal value than others. This is when it is especially important to consult with a tax professional to be sure that all areas are being covered when making a large donation like this if you intend to declare it on your next tax deduction. 


No matter the donation, large or small, monetary or not, any charitable contribution is making a positive impact on an organization and helps them take the necessary steps towards accomplishing their mission. Just be sure to retain all paperwork and proof if you intend to reap the fiscal benefits in addition to the altruistic ones. 


Jimmy Lustig Make Philanthropy Second Job

How to Make Philanthropy your Second Job

While you may enjoy the work you do in your regular nine to five job, it may not be very rewarding. For many people, turning to philanthropy can give them an opportunity to do something meaningful. While you may end up working without earning much in the way of monetary compensation, volunteering your time, expertise, or money can help you do something more meaningful.


Achieve immortality

There is no fountain of youth. We all must die someday, but we can be immortal by leaving behind a legacy that will be cherished by others. You can achieve this kind of longevity when you participate in philanthropic projects. Even if you don’t have the resources to fund a cure for cancer or pay for an addition to a university, your smaller acts will be remembered and cherished as well.


Use your talents

It’s easy to sit back and say anyone could design a better irrigation system or create a self-sustaining garden. While that may be true, the fact of the matter is that no one is doing it. When you’re the one to step forward and use your expertise to offer an innovative solution, that’s something that can and should fill you with pride. Even a small act, like organizing a community food drive, will benefit dozens or hundreds of people in need.


Network with other philanthropists

While you didn’t get into philanthropy for personal gain, that’s just what can happen. As you involve yourself with philanthropic events, causes, and organizations, you’ll meet others who share your passion for giving back. This can open up new opportunities for you, which you can use to advance your own career. You will also have the opportunity to develop long-lasting friendships with the people you meet. Philanthropy offers as much to the donors as it does to those in need of charitable donations.


By getting involved in philanthropy, you can change the lives of those in your community, or you can help a community somewhere else in the world. It’s up to you to decide what causes mean the most to you. Whatever you end up doing, your efforts will help make the world a better place and that can be far more enriching than your regular nine to five paycheck.

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