Year End Giving

Many charitable strategies like bunching donations, using your IRA, setting up recurring contributions, or leveraging assets like stock, real estate, or life insurance may help you lower your taxes this year.  Read more to see how to create a charitable impact while benefitting you and your family.

To reduce lost deductions, consider “bunching” your gifts. For example, if you typically give $10K annually, you could donate $50K this year to fund the next five years of your giving. As a result, you deduct your itemized expenses in the year you chose to “bunch your gifts” while claiming the standard deduction impact in the following years.

Starting at age 73 the IRS mandates IRA owners to take annual income withdrawals, known as Required Minimum Distributions (RMDs). You can use these dollars from your IRA to make Qualified Charitable Distributions of up to $100K. Still want some income? You may be able to create a Charitable Gift Annuity (CGA) that will pay you over your lifetime, while still creating charitable impact.

Plan for next year’s taxes and create a continuous stream of support by setting up an easy monthly or quarterly recurring donation directly from your credit card or bank accounts.   

Make a gift of stock, real estate, or another asset, avoid paying capital gains tax on the transfer and receive a tax-saving charitable deduction.  

Donating an existing life insurance policy to Community Foundation may give you an income tax deduction this year and, when done correctly, for years to come.