Maximize Your Charitable Impact with These Four Strategies
November 27, 2023
As the year draws to a close, it’s a perfect opportunity to rethink how you give to charity. This is important for managing how much tax you pay and how much help reaches those in need. Here are four effective strategies:
- Donate Stocks Instead of Cash: If you own stocks or mutual funds that have increased in value, consider donating them. This way, you avoid paying taxes on their gains, and the full value goes to charity. It’s a smart way to reduce taxes and support your favorite causes.
- Gift from Your Retirement Account: If you’re over 70½ years old, you can transfer money directly from your IRA to a charity. This method doesn’t count as taxable income, which can be beneficial for managing your taxes.
- Combine Your Donations into One Year (Bunching): If your donations in a single year exceed your standard tax deduction, you get more tax benefits. This strategy involves giving more in one year and less in others but still supports your chosen charities effectively.
- Large Upfront Donations Spread Over Time: Using a Donor-Advised Fund (DAF) or a Charitable Lead Trust, you can make a big donation now, which is spread over several years. This is particularly useful if you expect to be in a higher tax bracket in the future.
Need Guidance? Reach Out to Us!
These strategies are just a starting point. There are many ways to align your charitable giving with your financial goals. If you need more information or have questions, we’re here to help. Contact us to explore the best charitable giving options for your situation.
Read the full article for more in-depth information: 4 Charitable Giving Strategies to Maximize Your Impact.
