The weather is getting colder, the holidays are approaching, and you may be starting to think about year-end giving. While we are so grateful every day for all of you who partner with us to support our community, we especially make a point during this time of year to reflect on our deep gratitude for your generosity. Our region is so much stronger as a direct result of grants from your Donor Advised Funds, gifts to the Community Foundation, and the countless ways in which you have given back.
As you think about your year-end charitable giving, particularly in a year that has seen volatile economic conditions, here are a few reminders:

  1. Even When the Market is Down, It Pays to Donate Appreciated Securities. Giving appreciated stock is always a tax-savvy alternative to giving cash, regardless of the economic situation. Even if your portfolio has hit a rough patch, there are still likely opportunities to avoid capital gains tax on stocks held for more than a year.
  2. Don’t Forget About the Qualified Charitable Distribution. We mention this tool often because it is a great way to support the charities you care about. Individuals aged 70½ or older can donate up to $100K directly from their IRA through a “Qualified Charitable Distribution” (“QCD”). The QCD is excluded from income for tax purposes, plus it counts toward satisfying Required Minimum Distributions.
  3. Take Advantage of Bunching with a Donor Advised Fund. If your total itemized deductions for 2022 will be below the level of the standard deduction, consider “bunching”, or combining your 2022 and 2023 charitable donations into one year (2022) and placing them into a Donor Advised Fund. Doing so will allow you to receive a greater tax benefit by itemizing deductions for 2022. In subsequent years, you can take the standard deduction without having to make any additional charitable contributions. Because your increased contributions are in a Donor Advised Fund, you can now make distributions to your favorite charities over several years from your fund.

If you have any questions about year-end giving, please do not hesitate to contact George Gaskin, Director of Gift Planning.