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Giving Season Has Arrived! Here's 5 Ways to Maximize Your Year-End Giving Strategy Thumbnail

Giving Season Has Arrived! Here's 5 Ways to Maximize Your Year-End Giving Strategy

Are you wondering if you're best prepared.......

..........for the upcoming giving season?

The holidays will be here before you know it, and to minimize stress and maximize your gifting abilities, you must remember a few details that you may or may not be aware of. 

If you're unsure how your finances match up with your upcoming year-end giving strategy, now is the time to prepare by making your lists and checking them twice. Organization is critical to properly giving during this holiday season. Follow the five tips below to maximize your charitable giving strategy this year.

1. Do Your Research

You can learn more about the groups you're interested in donating to using Guidestar or the Better Business Bureau's Wise Giving Alliance. 

The organization you're involved with should also be able to provide registration information, including 501(c)(3) status and tax identification number. You may also use the tax-exempt organization search tool available on the IRS website to obtain more specific information about the organization. 

2. Bundle Your Donations

As deductions have increased over the years, you may save money over time and donate every few years instead of consecutively each year. By doing this, you may receive your itemized deductions in one tax year and take the standard deduction the next. 

If you're interested in accomplishing this, you might consider a donor-advised fund, which allows you to make a charitable donation and immediately receive a tax break. In addition, you'll receive recommended grants from the fund to your preferred charities over time. 

3. Donate Appreciated Stock

You might reduce capital gains taxes on investments by donating stocks or other appreciated assets, such as artwork or antiques.1 

In particular, high-income earners might consider a non-cash donation precisely because of the tax advantages they may be awarded. However, even those with what they might think to be small holdings could benefit by donating appreciated investments this holiday season. 

4. Utilize Your IRA

If you're a retiree over 70½, you might consider transferring money from your IRA to a qualifying charity. These distributions can be a tax-efficient way of meeting any required minimum distribution. Additionally, there's no need to itemize your deductions to benefit.  

You may distribute up to $100,000 per year per taxpayer. This increases to an acceptable $200,000 for married couples if they both have IRAs.2 Although this strategy has existed for some time; it only recently became a part of the permanent tax code. 

5. Monitor and Evaluate Your Portfolio 

No matter the size of your seasonal contributions, it's always essential to keep up with your portfolio to give correctly and confidently. In addition, staying up to date on newsletters, annual reports, and CEO updates can be an essential factor in understanding various organizations' operations. 

It's important to set personal reminders, at least annually, to re-evaluate your financial and personal priorities and update them if necessary. Your interests and preferences will change over time, as will the causes you choose to support. Awareness of these fluctuations is critical, and maintaining a thoughtful attitude makes the holidays meaningful.  

  1. https://www.irs.gov/publications/p526
  2. https://www.investopedia.com/articles/financial-advisors/032116/how-use-qcd-rule-reduce-your-taxes.asp

This content is developed from sources believed to be providing accurate information and provided by Twenty Over Ten. It may not be used to avoid any federal tax penalties. Please consult legal or tax professionals for specific information regarding your situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.