This guidance is only relevant for people living in the US.
Reading
Other people have done comprehensive write ups, so I am not going to repeat it:
https://forum.effectivealtruism.org/topics/personal-finance
https://forum.effectivealtruism.org/posts/un8ZjtG3px8mWeAjJ/credit-cards-for-ea-giving
https://forum.effectivealtruism.org/posts/GYcD5AzKsJeyHL6c3/using-the-tax-system-and-stock-market-to-donate-more-a-few
https://reducing-suffering.org/advanced-tips-on-personal-finance/
https://www.blackrock.com/us/financial-professionals/insights/donate-stock-to-charity-for-tax-savings
Summary
There are two things to optimize for:
- Tax deductions
- Fee minimization
Prescriptions:
- Donate securities with unrealized gains directly to nonprofit from your Personal Brokerage account. You won’t have to pay any taxes on your unrealized gains, and there are typically no fees associated with this.
- The easiest way I’ve found to do this is via the regrantor Every.org. Otherwise, you’ll have to email the nonprofit to obtain information about their DAF so that you can perform the transfer through your financial institution.
- If you aren’t donating securities, donate with a standard bank transfer. There are also typically no fees associated with this.
- If you are donating using a card
- Use high reward Credit Cards to offset fees
Donate through Facebook. They waive credit card fees. Fees are no longer covered as of October 31, 2023
Definitions
Charitable Contribution
A charitable contribution is a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value.