Philanthropy, also known as "charitable giving," is the act of voluntarily making a donation of personal resources to a charitable cause. In some cases, this planned giving of resources is accomplished through a will or other estate planning document. In other cases, giving is done while the donor is alive.
There are five primary benefits of philanthropy that motivate many donors:
1. Providing needed financial support to a cause or charitable organization
2. Receiving public recognition and gratitude as a donor
3. Avoiding capital gains taxes on appreciated property or securities
4. Reducing the value of a donor's taxable estate for estate tax purposes
5. Receiving an income tax deduction for charitable donations.
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