Year-end Giving

Planned Giving

It’s said, “time waits for no one.” Fortunately, there’s still enough of it in 2023 for you to properly plan your charitable gifts and maximize tax benefits before December 31.

Timing is especially important when considering a charitable gift. A gift of cash or appreciated stock may be completed quickly right up to year-end. A gift of real estate usually takes more time to complete properly but is well worth considering because of the tremendous tax benefits.

If you are looking for giving options that provide tax benefits for you, you may want to consider one or more of the following. It's a lot of information, so buckle up.

Donor Advised Fund (DAF). As the fastest-growing charitable giving vehicle within the United States, the DAF can be funded with cash, securities, real estate, and more. You may be eligible to receive an immediate tax deduction in the year funding is completed and if funded with appreciated assets, you may avoid capital gains thereby increasimg the giving capacity of the assets given. You can realize the tax benefits now, while directing the timing of the recommended grants to the ministries and charities of your choice at a later date if desired. In addition, anonymous giving is available with a DAF. Learn more about DAFs.

Qualified Charitable Distribution. If you are age 70½ or older, you can make a charitable distribution from your IRA to a qualified 501(c)(3) charity. A qualified charitable distribution (QCD) can be made directly from your IRA to a qualified public charity, and the distribution will not be treated as taxable income to the donor. In addition to providing tax advantages, a QCD would satisfy your required minimum distribution (RMD) amount. If you are age 70½ or older, you are permitted to transfer up to $100,000 for 2023 (and increasing to $105,000 for 2024) directly to charity tax-free each year, even if that amount is higher than your RMD.

The SECURE 2.0 Act of 2022 allows you to distribute funds from your IRA­—up to $50,000* of your annual Qualified Charitable Distribution limit (QCD)—into a Charitable Gift Annuity.** Learn more about QCDs to a Charitable Gift Annuity.

Family Gifts. If circumstances allow you to start transferring some of your wealth to children and grandchildren, consider making annual exemption gifts. For 2023, you are eligible to give $17,000 per person to any number of individuals free from gift tax.

Learn more about maximizing your charitable deductions.

That's a lot to consider. Thankfully, you're not on your own. If you would like assistance implementing any of these ideas or developing a year-end giving strategy specific to your situation, contact us at 866.621.1787.

*Indexed annually for inflation
**Also available for Charitable Remainder Unitrust (CRUT) or Charitable
Remainder Annuity Trust (CRAT)

Restrictions apply

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.

Did you know we have a wide array of products and services to help you on your financial journey? Learn how we can help.

Explore Services