Tips to Maximize Your Dollars During End of Year Giving
The season of giving is upon us! When making your donations this giving season, check out the below tips from Katherine Fox, CFP® and Investment Advisor at SVP Business Partner Arnerich Massena, to help you and your family maximize your dollar.
Remember that not all dollars are taxed equally!
Instead of writing checks for end-of-year gifts, consider gifting appreciated stocks or mutual funds held in your portfolio. By gifting appreciated securities, you receive the same tax deduction as if you’d written a check, but you can avoid paying the capital gains tax (up to 33% tax for some Oregonians and up to 23.8% for Washington residents) on the appreciated assets.
Be tax-smart with your IRA.
If you are over 70 ½ and are taking required minimum distributions, you may save on your tax bill by directing all or a portion of the IRA distribution (up to $100,000 annually) to a charitable organization through a Qualified Charitable Distribution (“QCD”).
This QCD will reduce your taxable income by the amount of the gift, while also benefiting our local community. It’s a true win-win.
Consider alternate giving vehicles.
Donor Advised Funds (“DAF”s) are an easy way to take a large charitable deduction in one year while preserving the ability to gift the same funds across multiple years.
An essential part of tax-smart giving for many philanthropic families, DAFs are an excellent choice to fund with highly appreciated securities. Because funds are invested inside a DAF, you can also use your initial gift to further social change through mission-aligned impact investing.
Don’t restrict your gifts.
Too often, nonprofit organizations are unable to respond to emerging needs, because their funding is tied to specific programs and projects. During uncertain times, having flexible funds and at the ready is key to meeting the most pressing needs of the community first. Consider making a general or unrestricted donation to your favorite organizations to maximize impact.
Make it count!
Credit card donations to SVP Portland can be made until midnight on December 31. Be sure the postage for any donations has a 2021 date.
We celebrate the impact you’re making on our community and the world through your donations!