Donate time, if not money

The holiday season is looking lean this year, and your wallet may be thinner than your generosity.

Even if you can’t afford to write a check, remember there are plenty of ways to help out a good cause. Donating property such as art or volunteering professional services are just a few options to consider. In fact, more people are realizing their job skills may be of great use to nonprofit groups.

“You’re seeing this culture where volunteerism is spreading,” said Mark Schickman, chairman of the Standing Committee on Pro Bono and Public Service for the American Bar Association.

Any assistance will likely go a long way in today’s economy, with demand for charitable services sharpening as people struggle to make ends meet. That means your donations may count more than ever this holiday season. Contrary to popular belief, an American Express survey last year found donors are only slightly more generous during the holidays; only 14 percent said they boosted donations at year’s end.

So if your budget is tight but you still want to give, here are a few ideas.

cGive stocks or property. Review your portfolio or home for assets you can donate. But before giving anything away, a few points to remember.

If you are looking to give stock, the preferred method for donation will depend on whether it grew in value.

“If it appreciated, the key is to donate it as a security rather than cashing it out first,” said Kim Wright-Violich, president of Schwab Charitable.

This will let you avoid paying capital-gains taxes on the stock’s appreciation. The donation can be written off at its fair market value.

Conversely, stocks that have lost value should be liquidated first, with a cash donation going to the charity. This will create a capital loss for tax purposes that can offset any gains.

To give away property such as art or a car, either you or the charity will need to pay for a third-party appraisal, Ms. Wright-Violich said.

The rules are complex, but generally you can deduct the property’s fair market value as a charitable donation as long as the charity is not selling the property for cash. Otherwise, you may only get to deduct what you originally paid for the property.

Real estate can be donated without restriction and the write-off is based on the appraised value. As with a stock, transfer the property to the charity if it appreciated in value to avoid paying capital-gains taxes.

cDo pro bono work. The term “pro bono” is widely associated with legal services, but professionals in a range of fields have come to embrace its spirit.

“If you have a monopoly on a service, we think there’s a duty to help people who can’t afford it,” said Mr. Schickman of the ABA’s Standing Committee on Pro Bono and Public Service.

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