"I think the misconception about charitable giving is that you have to have a lot of money to do it, and most donations to non-profits come from private donations, people out in the community," says Portfolio Advisors CEO Tina Mistry.
Mistry says gifting strategically can help you give back to important causes in a tax-advantageous way.
"If you do have cash that you want to donate every so often, you can give straight cash donations to organizations but that also counts as a potentially itemized deduction on your tax return," she said.
There is also a donor-advised fund option that allows you to make irrevocable contributions of cash or assets.
"That can help in terms of making larger donations to that donor-advised fund and you get a larger deduction," Mistry said.
This option gives you the tax deduction while also allowing you time to research and explore organizations that you want to support.
"It can stay within the account and remain invested, so you can grow it, give a little bit and let it continue to grow," Mistry said. "I think it's a great way to start building that legacy."
Donating appreciated stock is another option she tells her clients about.
"If you have some investments that have appreciated and you do not want to sell those investments because they will alter your tax picture, you can give those stocks to charitable organizations," she said. "The charitable organization can sell the stock without incurring any taxes."
When it comes to taxes, charitable donations are generally tax-deductible, but make sure you keep record of everything as there are different rules for those who itemize their deductions and those who opt for a standard deduction.
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