The Holidays are right around the corner!
Maximize your charitable gifting strategy with these 5 helpful tips!
1. Research the Organization
By using sites such as Guidestar or the Better Business Bureau’s Wise Giving Alliance, you can learn more about the groups you’re interested in offering donations to.
The organization you’re involved with should be able to provide registration information including 501(c)(3). Check out the tax-exempt organization search tool available on the IRS website to obtain specific information. https://apps.irs.gov/app/eos/
2. Bundle Your Donations
As deductions have increased over the years, you may choose to save money over time and donate every few years as opposed to each year, consecutively. By doing this, you may receive your itemized deductions over the limit one year and take the standard deduction the next. Consider a donor-advised fund, which allows you to make a charitable donation and immediately receive a tax break. .
3. Donate Appreciated Stock
By donating stocks or other appreciated assets, you might reduce capital gains tax on investments.1
The qualified charitable organization of your choice can receive the full benefit of the appreciated asset’s current market value, while you may be able to save capital gains taxes of up to 15% or 20% on the appreciation.
4. Utilize Your IRA
If you’re a retiree over the age of 70, 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 in order to benefit.
According to the National Association of Enrolled Agents, 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
5. Monitor and Evaluate Your Portfolio
No matter the size of your seasonal contributions, it’s always important to keep up with your portfolio in order to give properly and confidently. Staying up to date on newsletters, annual reports and CEO updates can be an important factor when it comes to understanding the operations of various organizations.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual 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.