Ready or not, the holidays are here! To help you make a lasting impact with your holiday charitable giving, here are the Community Foundation of Broward’s 10 tips for year-end giving.
1.) Develop a strategy and plan for your year-end charitable giving. Review your personal objectives for giving as part of creating a plan. Spell out your mission and follow it in developing your giving plan.
2.) Consider gift “bundling.” You can bundle several years’ worth of support for your favorite causes or organizations through a single, year-end gift to a donor-advised fund. Gift bundling enables you to lock in support to achieve your long-term charitable goals, while realizing the full tax benefit during the 2022 year.
3.) Donate appreciated stock. Donating appreciated stock multiplies your giving power by removing your tax liability from the stock sale and realizing tax benefits from the donation. The stock transfer must take place before the end of the year and it may not be possible to complete in one day.
4.) Give with your IRA distribution. Using your Qualified Charitable Distribution (QCD) from your IRA is an easy way to donate. A QCD is an above-the-line tax deduction that can satisfy your required minimum distribution.
5.) Name a charitable organization as a beneficiary in your will. If now isn’t the best time to dip into your assets and make a donation, naming a charitable organization such as the Community Foundation of Broward as one of your beneficiaries is a good way to ensure that your future gift will help others.
6.) Document the value of your gifts. For donations of non-cash items worth more than $5,000, an appraisal may be required to determine fair market value.
7.) Be mindful of limits on charitable contributions. According to the Internal Revenue Service, generally you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases.
8.) Focus on the December 31 year-end deadline. Charitable contributions must be made by December 31, however, credit card charges processed before the end of the year are deductible in that year, regardless of when you pay off the charges. Also, checks written and mailed before the end of the year are deductible in 2022, even if the checks are cashed next year.
9.) Contact your professional advisors to help clarify your best giving strategy. It is always important to consult your financial advisor and your accountant to fully understand ramifications of year-end giving.
10.) Consult with philanthropy experts at Community Foundation. We can provide guidance about making the most of your charitable giving. Visit www.cfbroward.org to learn how we can help amplify your impact.
“Now is the time to plan and maximize the value of your year-end charitable giving,” said Community Foundation President/CEO Jennifer O’Flannery Anderson, Ph.D. “Our heartfelt thanks go out to the tens of thousands of Broward residents who invest in our community’s future by making charitable contributions, especially the visionary philanthropists who have created a legacy of BOLD impact with their personalized charitable funds at the Community Foundation.”
The Community Foundation is ready to help you make the most of your holiday giving. To find out how we can amplify your impact, contact Nancy Thies, Vice President of Philanthropic Services, at nthies@cfbroward.org or 954-761-9503.
