End of year charitable donations

Many people make their charitable contributions at the end of the year, which is fast approaching.  Did you know that there can be even better ways to make donations than writing a check?

Appreciated assets:

One tax-efficient way to donate to a charity is to use appreciated assets.  This includes stocks, bonds, or other investments that you have held for more than a year and that have gone up in value since you bought them.  The great thing about donating these assets is that you get a charitable deduction equal to the fair market value of the asset (just like you would if you wrote a check), but you do not have to pay tax on the capital gains (like you would if you cashed in the asset in the future).

Qualified charitable distributions:

Certain individuals who are over 70 1/2 can request that the required minimum distribution from their IRA be made directly to a charity of their choice.  This can be an incredibly smart move for many people because you avoid paying any income tax on the distribution from the IRA.  So, people who do not need the income from their IRA, but must take a distribution anyway because it is required, have a great option for making their charitable donations.

If you have questions about charitable donations, including how you can include a charity in your will or trust, call our office today.  We are here to help.


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