![]() ![]() Please note, changes in tax laws or regulations may occur at any time and could substantially impact your situation. * If the donor doesn’t survive the five-year period, a prorated amount reverts back to the donor’s taxable estate. Meet with your financial and tax advisors to discuss the best way to accomplish your goals.Decide how you’d like to plan your giving – immediate vs.Make a list of the people and/or organizations you’d like to benefit.Your financial advisor can walk through the characteristics of each and, together with your tax and legal professionals, develop a strategy that fits your charitable intentions. Other strategies you may consider include charitable gift annuities, pooled income funds, charitable remainder trusts and charitable lead trusts. Because these assets are potentially subject to both income taxes and future estate taxes, you could significantly reduce future tax obligations by gifting “double-tax” assets to charity. Additional optionsĬonsider naming a charity or donor advised fund as the beneficiary of your qualified retirement account assets. Like any gift, individuals can give up to $16,000 per beneficiary a couple can give $32,000. Through “accelerated gifting” – a larger, upfront investment – you can contribute up to five years’ worth of gifts at one time per beneficiary*. The account can be invested and grow tax-free. Deduct contributions immediately, and recommend distributions to your favorite charities when you’re ready. Donor advised funds (DAFs)Ĭreate a de facto family foundation with no legal expenses or administrative and tax reporting requirements. Or, consider gifting property to an organization of your choice and then using tax savings to fund a life insurance policy to benefit other beneficiaries. Pay gift tax on a percentage of the policy’s value at the time of transfer, but when it’s ultimately distributed, the payout won’t be taxed as part of your estate. One option is to transfer ownership to a loved one or charitable organization. Gifts of securities are deductible up to 30% of your adjusted gross income, depending on where they’re directed. Gifts also have the potential to reduce estate taxes. Receive an immediate tax deduction for the current value of the stock and avoid capital gains tax on the appreciated portion of their value. This means you can enjoy helping a worthy cause while simultaneously reducing your taxable income. The money is excluded from adjusted gross income, potentially reducing taxes. ![]() Traditional IRA owners can make required distributions directly to qualified charitable organizations. If you still prefer to limit in-person interactions, consider opportunities that support social distancing (like drive-by food collections, for example) or allow you to give back remotely (such as mentoring or tutoring via video chat). Volunteerĭonate your time to get an insider’s view of an organization, its people and practices. To help you share this joy, here are some ideas for year-end giving, although there’s no need to wait. Two studies conducted at the University of Chicago and Northwestern University found that giving to others makes us happier than giving to ourselves. Contribute to the causes you care about with strategies that match your intentions. ![]()
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