Professional Advisor Perspective:

Year-End Charitable Giving Tips

December is an exciting time of year at the Community Foundation. It’s the season of giving and we’re inspired daily by the generosity of our community members in the many ways they give back to area nonprofits through the Community Foundation.

While giving comes from the heart, there are often ways to give smarter that enable you to give more. We asked a few of our local professional advisor partners to share their perspective on some of our favorite quick, helpful charitable giving tips for year-end giving:

Giving Appreciated Assets

“If you currently write checks to the nonprofits of your choice, and you own appreciated assets such as stocks, mutual funds or real estate, you may have a meaningful opportunity to pay less tax, give more, and enhance your personal cash flow. By donating long-term appreciated non-cash assets, you avoid capital gain taxes thus sending more to charity. Clients of CapTrust have benefited from this planned giving strategy and others similar to it with the aim to minimize their taxes while multiplying the impact of their gifts. If you have been donating cash only — when planning your next gift, it may pay to consider giving an appreciated asset instead.”


Donor Advised Funds

“Donor advised funds are a critical tool that I use to help my clients pass their businesses and wealth to future generations. My clients’ donor advised funds save taxes, support their favorite nonprofits, and set the stage for teaching future generations the virtues of charity and diligence. They are a low-cost, hassle-free solution empowering the donors and their families while promoting the good work of the nonprofits, local or afar, benefiting from the donors’ benevolence. Donor advised funds are a great way to change the world.”


Gifts from an IRA Account

“ Taxpayers who are 70 1 ⁄ 2 or older should consider charitable giving directly from their IRA to a nonprofit. Giving IRA distributions in this manner can be a tax efficient way of providing funding to your favorite nonprofit. In addition to tax savings, the direct gift will count toward meeting your required minimum distribution (RMD) for the year. The tax benefits of this idea will vary based on your personal situation so you should consult your tax advisor before implementing this strategy.”


Estate Gifts through the Community Foundation

“Including the Community Foundation as a beneficiary in your estate plan is a great way to accomplish your charitable goals and extend your personal legacy. The Community Foundation makes giving easy and offers a variety of ways to assure that your goals are satisfied long after you have passed away, taking the obligation off your family to administer the funds for charity.”


To learn more about making the most of your charitable giving, contact your professional advisor or tax manager, or you can contact us for further information and resources at info@cfhz.org

Originally Featured in the Community Foundation’s Winter 2016 Newsletter.