Are you looking for tax-efficient strategies for year-end giving? Read our six tips:
- Open a Fund: Charitable funds at the Community Foundation are excellent vehicles for year-end giving because you receive immediate tax benefits when you open a fund with cash, stock or other assets.
- Donate Stock: Gifts of long-term appreciated stock to your donor-advised or other type of fund at the Community Foundation is always one of the most tax-savvy ways to support your favorite charitable causes because capital gains tax can be avoided. Gifts of Stock should be made by Wednesday, Dec. 20 to ensure your contributions are received in time for your 2023 tax deduction.
- Consider different types of funds: The Community Foundation offers different funds to meet your specific needs, including donor advised funds, designated funds and field of interest funds.
- Rollover an IRA distribution: If you are age 70 ½ or older, you can make a qualified charitable distribution from your IRA to certain types of funds, including designated funds.
- Bunch your gifts: If your total deductions are at or under the standard deduction amount for 2023, but you and your advisors determine that you could benefit from increased deductions, consider using a charitable fund to bunch your donations. By structuring a large year-end gift to your donor-advised fund, you could surpass the standard deduction threshold to further reduce your taxes in 2023. Then, you can recommend grants from your fund to your favorite nonprofits this year and in subsequent years.
- Give to our annual fund: Consider a donation to our annual fund. It helps the Community Foundation provide expert support to nonprofits and philanthropists in our region throughout the year.
Contact our team to learn more: Marcia Shackelford, Chief Philanthropy Officer, at mshackelford@pacf.org or Michael Nuno, Vice President of Philanthropic Services, at mnuno@pacf.org.
