During this time of year, we are often reminded of the importance of giving to others, especially those less fortunate. In fact, many charitable organizations receive a substantial amount of their donations near the end of the year, especially around the Christmas holiday. These year-end gifts not only help ministries and charitable organizations continue their work, but can also provide the donor with tax benefits.
Find the Right Giving Vehicle
When making last-minute gifts, timing is essential. You have until December 31 to make a charitable gift that will impact your taxes. A cash gift can be completed right at the end of the year, while gifts of appreciated stock and real estate usually require more time to complete. Fortunately, there are a variety of tools that can help you reach your personal giving goals.
A Donor Advised Fund is a convenient way to enjoy tax benefits now, while setting aside money to donate in the future. You contribute money to the fund, receive an immediate tax deduction, and then advise where and when the money should be distributed.
A Charitable Gift Annuity can provide a lifetime fixed income for you and/or others, as well as the opportunity to support ministry with the remainder. And if you fund a Gift Annuity you could receive an immediate tax deduction for the gift portion of the annuity.
A Charitable Remainder Trust is designed to provide immediate tax benefits, income for you for a set period of time and the support of the ministry of your choice with the trust remainder. The funding of the trust creates an immediate tax deduction and the avoidance of capital gains on the sale of appreciated assets.
An Endowment provides the ministry of your choice with ongoing support for an unlimited number of years, even after your lifetime. In addition, this giving tool provides continual payments, which are particularly ideal if you wish to continue to add assets to the fund, to provide ongoing support to a ministry, or to establish a scholarship.
Regardless of your tax bracket, making charitable donations at the end of the year may benefit you when it’s time to fill out your tax return. Be sure to consult your tax advisor before making any significant charitable contributions, in order to understand the impact such a gift could have on your own taxes and finances.
If you are interested in making a charitable gift or exploring your options for taking advantage of tax benefits, contact us today at 877.616.5205 or plannedgiving@agfinancial.org.
This information is not legal or tax advice. Information is from sources deemed reliable. Information is subject to error, omission, withdrawal, or change. Contact your own legal or tax advisor before taking any action that would have a legal or tax consequence.
