This holiday season, plan ahead with your trusted financial advisor to increase the impact of your donations during end-of-year giving. Check out the below tips to help you and your family maximize the dual benefits of giving before 2022.
- Unrestricted gifts are the best way to support your favorite nonprofit! These gifts can be even more impactful when a donor commits to making recurring gifts, so the nonprofit can plan for the months ahead.
- Give appreciated assets . Donating appreciated stocks or other assets can eliminate taxes a donor might otherwise incur if they sold the assets first and then donated the proceeds. This strategy can increase the impact of your gift! Non-cash appreciated assets that are held for over a year are usually eligible.
- Give more by donating retirement assets. Are you at or near retirement age? You might be eligible to use your IRA to support your giving strategy. If you are 70½ and older, you can direct up to $100,000 per year tax-free from an IRA to a nonprofit through Qualified Charitable Distribution. Generally, donors should initiate these distributions by early December to ensure processing is complete before the end of the year. Learn more >
- Start a Donor Advised Fund. Donor-Advised Funds are a vehicle that encourages tax-smart giving and philanthropic planning. They give you the ability to make a single donation and then grant for years to come. Learn more >
- Make sure you know your financial institution’s timelines. If you have a donor-advised fund, many institutions need you to make your grant recommendations early December. To ensure your favorite nonprofits receive your donations by the end of the year, stay on top of early deadlines!
- Increased value of non-cash assets makes year-end a great time to give generously. Given the favorable market conditions, many folks have increased value for non-cash assets, including private business interests and real estate. There are also significant tax incentives for charitable giving through provisions in the CARES Act, extended through the end of 2021. Talk to your financial advisor today to prepare for an impactful year-end giving.
- Make it count for 2021. Credit card donations to the Community Foundation can be made until midnight on Dec. 31. Be sure the postage for any gifts has a 2021 date!
We celebrate the impact you’re making on our community and the world through your donations. Please reach out to us if you need any assistance.