2021 Charitable Giving

As the end of the year approaches, you may be considering a charitable contribution. Did you know that many charities accept transferred securities as a donation? This is just one opportunity that could result in a tax benefit to you and a larger gift to your charity.

Here are a Few Giving Opportunities:

• Donate appreciated securities from a taxable account. You get to deduct the value of the transfer and avoid the recognition of capital gains associated with the shares.
• Donate part or all your Required Minimum Distribution (RMD) directly from your IRA. Qualified charitable distributions do not provide a charitable deduction for taxpayers. Instead, with a qualified charitable distribution, a check is sent directly from an IRA to charity. This allows the donor to exclude the amount from taxable income.
• Establish and fund a donor-advised fund. This allows donors to make a charitable contribution in the form of cash or assets and receive an immediate tax deduction. Then the owner can gift from the fund over time.
• Gift Bunching. Bunching is the grouping of charitable gifts one intends to make over a future period into a single year. This way the charitable deduction is larger in the year of gifting and zero in the years no gifts are made. So, if you currently don’t itemize your taxes, strategically timing your end-of-year gifts might allow you to deduct a portion.

Keep in mind that year-end is quickly approaching, and some strategies require more time to plan and execute. Please reach out to your Kaizen Advisor by the end of November to allow us enough time to process your request.

https://www.schwabcharitable.org

https://www.irs.gov