By Jennifer O'Flannery Anderson, Ph.D.

Community Foundation of Broward President/CEO

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Helping people makes you feel good.

This time of year, we hear a lot about the tax benefits of making charitable donations before the clock strikes midnight on New Year’s Eve. And yes, it’s certainly wise for charitably minded people to consider making their donations during the holiday season so they can realize the tax benefits when this year’s tax bill arrives.

But let’s not forget why we give in the first place. For most of us, it’s because helping people makes us feel good. And this is the time of year when our charitable giving can have an even greater impact than usual.

That’s because many nonprofit organizations rely on end-of-year gifts to both sustain their critical work in our community and to determine what efforts to pursue in the year ahead.

Support for health clinics, after-school programs, food pantries, arts initiatives, environmental cleanups, animal rescue, career training – so much of the charitable work that transforms lives and makes our community a better place to call home is fueled by year-end giving to local nonprofits. Giving during the holidays to your favorite charities can ensure ongoing support for your charitable passions.

Making an online donation or mailing a check are great ways to give, though you can also use other assets to amplify your impact. Here are five asset options to keep in mind for year-end giving:

• Give stock or real estate: If you own “highly appreciated assets,” such as stock or real estate, and are also planning to make a year-end donation, consider giving the appreciated assets to your favorite nonprofit. Assets like appreciated stock can be sold by a charity for 100 cents on the dollar – no capital gains tax applies. That means your favorite charitable causes end up with more money to work with than if you had sold that same asset yourself and donated the proceeds.
• IRA distribution: Making a Qualified Charitable Distribution (QCD) from your IRA is an easy way to donate to a charitable organization. A QCD can reduce your taxable income and satisfy your Required Minimum Distribution (RMD).
• 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 through a donor-advised fund enables you to lock in support to achieve your long-term charitable goals, while you get the full tax benefit this year.
• Donate Complex gifts: Don’t be afraid to think outside the box. “Closely-held stock” and even valuable collections can be excellent gifts to fuel your charitable support. Check with your favorite nonprofit to see if they are able to work with you and your professional advisor to facilitate a gift of a “complex” asset.
• Gift planning: If now isn’t the best time to donate, you can name a nonprofit organization as one of the beneficiaries in your estate plan. For example, when you commit to a bequest to the Community Foundation of Broward your future gift will create an endowed charitable fund that provides sustainable, permanent support for causes that mean the most to you.

Don’t forget that it can take a few days to process a stock donation, arrange a wire transfer or take the other steps required when using a non-cash asset for your year-end giving. So, the earlier in the holiday season you make your charitable gift, the more flexibility you have.

I encourage you to contact your professional advisor to discuss giving strategies that work best for you. You are also welcome to contact my team at the Community Foundation of Broward to discuss how, working in collaboration with your professional advisor, our philanthropic expertise can help you make the most of your charitable giving. Visit cfbroward.org to learn more.

However you choose to make a difference during the holidays – whether it’s with a charitable donation, volunteering your time or just sharing words of encouragement with people you encounter – I hope you too get to experience the joy of helping others.

CLICK HERE TO LEARN MORE ABOUT YEAR-END GIVING OPTIONS AND TIMETABLES.

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 Kelly Marmol, Vice President of Philanthropic Services, at kmarmol@cfbroward.org or 954-761-9503.

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